Chang'an Motors takes over Kunming Yunnei Power
- Source: Global Times
- [18:28 January 07 2011]
- Comments
Kunming Yunnei Power Co., Ltd. announced Thursday that China Chang'An Automobile Group (CCAG) has taken over the company's shareholder Yunnan Engine after the State-owned Assets Supervision and Administration Commission of Kunming, Yunnan Engine's actual controller, transferred its whole property to CCAG gratis.
Yunnan Engine has 38.14 shares of Yunnei Power.
Kunming Yunnei Power, which was delisted last month, resumed trading after the transfer.
As a Chinese car maker under the China Ordance Equipment Group Corporation, CCAG made a deal with the Kunming government, promising to invest 1 billion yuan ($150 million) in Yunnei Power in the next five years. The aim is to make the company a research and development center as well as an import and export base of diesel engine.
In addition, CCAG will meet market demand to invest another 5 billion yuan ($ 754 million) to increase the company's production capacity of diesel engines from 600,000 units per year to 1.2 million units per year, with an estimated annual income of 12 billion yuan ($1.8 billion).
Kunming Yunnei Power achieved annual revenue of 24.9 billion yuan ($377 million) in 2009, and its net profit reached 170 million yuan ($25.6 million). The company's revenue from the first three quarters of last year was 16.66 billion yuan ($251 million), and the net profit reached 70.4 million yuan ($10.6 million).
