Guangxi Yuchai Machinery Group Company Limited (Yuchai), a subsidiary of China Yuchai International Limited (CYI), has entered into a strategic cooperation agreement with Kim Long Motor, a subsidiary of Vietnam-based FUTA Group. The agreement involves Yuchai granting technology licences for specific engine models to Kim Long Motor, which will manufacture the engines primarily for buses, trucks, and other commercial vehicles in Vietnam. Kim Long Motor will have exclusive sales rights for these engines in Vietnam, with priority rights in other Association of Southeast Asian Nations (ASEAN) countries and in South Korea.
The licensing agreement is valid for 15 years and includes licensing fees of USD28 million. Yuchai will also support the construction of an engine factory in Vietnam by providing technical services for equipment installation and commissioning.