On 16 Jul 2008, Weichai Power Co., Ltd., China's largest heavy duty engine manufacturer, together with Canada Westport Innovations Co., Ltd., and Hong Kong Peterson (CNG) Equipment Limited Co., Ltd., established a new joint venture, Weichai Westport Inc. (WWI), aiming to boost its market share and gradually take the lead in the global engine market.

Under the 30-year joint venture agreement, Westport's initial investment is expected to be approximately USD 4.5 mln (RMB 30 mln), equal to a 35% stake, while Weichai Power and Hong Kong Peterson will hold 40% and 25% stakes respectively.

Ideally, the new joint venture will become the largest company in its industry within a period of between three and five years. While facing risks and industry competition, WWI is considered to be Weichai Power's first step in its technological preparation for the market for the next five to ten years. As the natural gas engine market is still in its preliminary stage, it is too early to tell how the joint venture will fare. However, it is good news for Weichai Power, which has always sought new products to meet the needs of the market.

Source: The Economic Observer Newspaper

Date: 29 Jul 2008

CN01/EJ/DM/BT/KM