On July 8, 2011, Shandong Shantui Machinery Co., Ltd. signed a cooperation agreement with Wuhan Hanfu Special Purpose Vehicle Co., Ltd. to jointly build a domestic leading environmental sanitation engineering vehicle and other special automobile manufacturing enterprises. Representatives of relevant departments of Wuhan City, Hubei Province, leaders of Shandong Heavy Industry Group Corporation and representatives from Dongfeng, Futian, Jiefang, Chang'an and Jiangling Company attended the signing ceremony. As a major automobile industry, Wuhan is committed to building China's automobile capital. However, the production of commercial vehicles such as special vehicles is a short board. Wuhan hopes to make a difference in commercial vehicles through a series of measures.
Shantui Machinery is a subsidiary of Shandong Heavy Industry Group Co., Ltd., located in Jining, Shandong Province. It is a state-owned large-scale engineering machinery and equipment manufacturing enterprise integrating scientific research, development, production, and sales of construction machinery mainframes and accessories. In addition, Hanfu Auto mainly produces environmental sanitation machinery vehicles with 118 models including sprinklers, washing vehicles and garbage trucks. The annual production value is nearly 200 million yuan. The products are exported to Southeast Asia and have been rated as the famous trademark of Hubei Province. To draw the line, the two companies have a strong alliance.
According to the cooperation agreement, Shantui Machinery Co., Ltd. purchases Hanfu Automobile shares and establishes a joint venture company. It invests about 900 million yuan to expand its production scale. The annual production capacity of special vehicles will reach 10,000 units in 2015, and the output value will reach 500 million yuan. The top three in the same industry in China. Shandong Heavy Industry Group stated that the central area being rejuvenated has a large demand for special vehicles and will build Wuhan into its industrial base with an annual production value of RMB 2 billion. It is understood that Shandong Heavy Industry, which has 4 listed companies, has an annual output value of 150 billion yuan.
Although Wuhan's auto industry has exceeded 100 billion yuan, commercial vehicles have only a small share. The output value of special vehicles is less than 1%. Of the 194 auto industry enterprises, only 24 are producing special-purpose vehicles, and they are small-scale, low-yield and technically powerful. Not strong, must be bigger and stronger through mergers and reorganizations. Shandong Shantui Machinery Co., Ltd. signed a contract with Wuhan Hanfu Special Purpose Vehicle Co., Ltd. The former will invest approximately RMB 900 million and the latter will establish Shantui Hanfu Special Vehicle Co., Ltd., aiming at the top three positions in the industry.
The current domestic special-purpose vehicle market is very popular, but subject to constraints of funds and land, it is difficult for Hanfu to seize the opportunity alone. Shantui previously wanted to enter the special-purpose vehicle production industry, but suffered from the inability to obtain new licenses. After the cooperation between the two, it will develop high-end municipal, garden, sanitation vehicles, and will vigorously explore the international market. The new plant covers an area of ​​300 acres and is scheduled to be put into production in 2012. It is expected that it will reach 10,000 vehicles in 2015, with an output value of 2.5 billion yuan. The target will be the first three in the same industry in the country.
At present, the production of special vehicles is one of the shortcomings of the automobile industry in Wuhan. The annual output value of the largest special-purpose vehicle manufacturer in Wuhan is less than 200 million yuan, while the annual output value of the first-ranked special vehicle of Zoomlion has reached 5 billion yuan. This cooperation can, to a certain extent, make up for the shortcomings of the Wuhan automobile industry.
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