Construction begins on automotive engine manufacturing plant in Thua Thien Hue

It is part of a comprehensive strategic cooperation agreement on engine production and manufacturing in Viet Nam which was signed between Kim Long Motor Hue JSC and Yu Chai of China, marking an important landmark not only for Kim Long Motor Hue but also for the Vietnamese automobile industry.

This is the first time Viet Nam has received advanced technology to manufacture modern automobile engines and engines for other industries.

The project is divided into two phases. The first phase focuses on producing automotive engines, with operations expected to begin in early second quarter next year. The plant will manufacture a diverse range of engines for automobiles, marine applications, generators, farming machinery, and construction equipment.

Initially, the plant will prioritize the production of internal combustion engines (Diesel), CNG engines, and electric engines, with a capacity of over 12,000 units annually, while plans are in place to increase capacity in the following years. The subsequent phase will involve manufacturing axles, gearboxes, and automotive drive trains.

The engines produced at this facility will not only meet Kim Long Motor's domestic market needs but also be exported to ASEAN countries, South Korea, and other markets.

Addressing the groundbreaking ceremony, Phan Quy Phuong, Vice Chairman of Thua Thien Hue People's Committee said the plan with an annual capacity of 108,000 cars is of significant importance for the impelementation of the Viet Nam Automobile Industry Development Strategy approved by the Prime Minister on July 16, 2014 and it is a proud of Thua Thien Hue province.

The Kim Long Motor Hue complex is a comprehensive manufacturing facility producing buses, trucks, cars, and automotive parts, with an expected capacity of 108,800 vehicles per year. To date, the company has completed the first phase of the project, including a bus manufacturing and assembly plant.

Since February 2024, Kim Long Motor Hue has produced nearly 300 vehicles, including sleeper buses, seated buses, city buses, and mini-buses, delivering over 200 sleeper buses to customers and creating jobs for approximately 1,800 workers.

The Kim Long Motor Hue complex is one of the key investment projects in Thua Thien Hue province, which will help central locality to further lure investments into developing supporting industries for the automobile sector, to increase its budget revenue, and to create jobs for local residents, said Vice Chairman of Thua Thien Hue People's Committee Phan Quy Phuong.

Meanwhile, Ly Quoc Viet, Permanent Deputy General Director of Kim Long Motors shared: "Kim Long Hue engine manufacturing factory plays the role as the "heart" in Kim Long Motors' strategy of developing Vietnamese-branded automobile products, meeting the strategic goal of leading the commercial vehicle market in Viet Nam and aiming for export. The combination of Kim Long Motors and YuChai brings optimal engine solutions in terms of safety and fuel consumption.

Cooperation between Kim Long Motors and YuChai would also make significant contribution to advancing socio-economic development, industrialization and modernization process in Thua Thien Hue and in central region as well. It would also boost cooperation between Vietnamese and Chinese partners, contributing to the realization of high-level agreements of the two countries' senior leaders.

In conjunction with the groundbreaking ceremony, Kim Long Motor also launched the new KIMLONG 99 sleeper bus, featuring the latest Yuchai K11 engine. Additionally, the company delivered the first batch of 60 KIMLONG 99 sleeper buses, part of a 600-bus contract for 2024.