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Sinotruk to Take on Volvo in Russia

Sinotruk is to set up a heavy truck assembly plant in Russia with local partner Likhachev-AMO ZIL, the second-largest heavy-duty truck manufacturer in Russia, according to a report in the Shanghai Securities News.

According to the report, Sinotruk agreed to sell 7,600 heavy-duty trucks to Likhachev-AMO ZIL over the next year. In a separate development, Sinotruk has also reported that its Sinotruk Jinan Power Co Ltd unit has agreed to acquire gearbox production and processing equipment and facilities from parent China Heavy Truck Group Co Ltd. The Chinese OEM currently purchases gearboxes from independent suppliers. Upon completion of the deal, Sinotruk will be able to start mass production of gearboxes, with initial annual capacity of about 40,000 units.

This, we suspect, will get extremely messy.

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This page contains a single entry from the blog posted on December 17, 2007 1:54 PM.

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