Hong Leong Asia Disposes Xiamen Plant and Consolidates Assembly Operations

Hong Leong Asia’s New York listed subsidiary, China Yuchai International, through its main subsidiary, Guangxi Yuchai Machinery Company (GYMCL), has announced the disposal of 100 percent shareholding interest in Xiamen Yuchai Diesel Engines Co.

GYMCL will receive a total consideration of Rmb189.5 million and expected to record a loss of Rmb17.6 million from this transaction on a preliminary basis.

Xiamen Yuchai Diesel Engines was established in December 2006 to facilitate the construction of new diesel engine assembly factory in Xiamen, Fujian Province, with a total investment of Rmb200 million and annual production capacity of 100,000 units. After the disposal, GYMCL will continue to serve existing customers from its main manufacturing base in Yulin City.

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