On November 29, the groundbreaking ceremony for the Dongfeng Smith Joint Venture Project (hereinafter referred to as “Dongfeng Smithâ€) semi-trailer plant was held in Phoenix Industrial Park, Wuhan Economic and Technological Development Zone. This is another important step taken by Dongfeng Commercial Vehicle Co., Ltd. following the construction of Dongfeng Heavy Truck Co., Ltd. It will surely promote the rapid development of the entire heavy truck and trailer industry.
Dongfeng Smith has a total investment of about RMB 900 million in the first phase and plans to use 5 years to reach 40,000 units. The site of the plant is located in Phoenix Industrial Park, Wuhan Economic and Technological Development Zone, with a total area of ​​approximately 150,000 square meters and a workshop area of ​​32,000 square meters. In the first phase, a capacity of 25,000 units will be achieved and it is expected to start production in September 2014. The main production types include: general freight semi-trailers such as warehouse wagons, slats, flatbeds, vans, and side curtains, and related parts and components.
Member of the Standing Committee of the Wuhan Municipal Committee and Secretary of the Working Party of the Development Zone Zhu Yi, Vice Mayor of Wuhan Shao Weimin and other government leaders, Zhu Fushou, General Manager of the Dongfeng Motor Company, Deputy Secretary of the Party Committee, Tong Dongcheng, Deputy General Manager of Dongfeng Motor Co., Ltd., and a family shareholder and director of the Smiths Corporation Andre Smith, director Uli Shubok and others attended the groundbreaking ceremony. Zhu Fushou announced the start of construction. Dong Gang Commercial Vehicle Co., Ltd. General Manager and Dongfeng Smith Chairman Huang Gang gave opening remarks. Dongfeng Smith General Manager Andre Smith introduced the progress of the project.
Tong Dongcheng, deputy general manager of Dongfeng Motor Co., Ltd., said that Dongfeng Smith's start-up construction is another important move of Dongfeng Commercial Vehicle Co., Ltd. following the construction of Dongfeng Heavy Trucks' new plant, and will certainly inject new strength into Dongfeng Motor Company, and will also promote it. The rapid development of the entire heavy truck and trailer industry.
Andre Smith, a family shareholder and director of Smiths AG, said that Smith is a leading manufacturer of semi-trailers in Europe and Dongfeng is a leading truck manufacturer in China. The cooperation between the two companies will certainly bring about a lot of synergy. In the next five years, we will achieve the goal of achieving a market share of 10%.
Zhu Yi, Member of the Standing Committee of the Wuhan Municipal Committee and Secretary of the Development Area Working Committee, said that he hopes the project will lead Dongfeng Motor Company, commercial vehicle industry and even the auto industry to go further. I hope this project will bring more economic and technological development zones and Wuhan City Prosperous scene.
It is reported that on November 16, 2012, Dongfeng Motor Group Co., Ltd. and the German company Smith signed a strategic cooperation project joint venture contract. According to the contract, Dongfeng Motor Group Co., Ltd. and Smith Stock Co., Ltd. jointly established Dongfeng Smith Special Vehicle Co., Ltd. (hereinafter referred to as Dongfeng Smith), and is committed to the development, production, and sales of semitrailers. Each of the two parties owns 50% of the equity of the joint venture company. The initial stage of the joint venture will focus on the mainstream market for semi-trailer transportation in China, launching warehouse gates, gates, vans, and low-bay products. The joint venture will establish an independent research and development organization and will cooperate with Dongfeng Commercial Vehicles on new commercial vehicles. The project will be integrated with drag-and-drop joint research and development to achieve the best match and to promote marketing simultaneously.
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