The Kommersant daily said on Tuesday that Russian engine producer OAO ZMZ and China’s vehicle maker Hongoing Changan Kuayue Automobile Co have created a joint venture to assemble diesel engines in China, according to Dow Jones.
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The report said that ZMZ would assemble 150,000 engines worth $US350 million a year in China as of 2005. ZMZ will sell its engines to Hongoing Changan Kuayue for $4,000 to $4,500 each, which is 50% cheaper than Japanese or Italian engines of the same class, the paper said.
The controlling stake in the joint venture will belong to OAO Severstal-Avto, a holding company for ZMZ and a unit of Russia’s largest steel-maker OAO Severstal.
