PetroChina forms joint venture with Beiqi Foton

PetroChina Company Limited has agreed to form a joint venture with Beiqi Foton, the commercial vehicle production arm of China’s Beijing Automotive Industry Holdings Company (BAIC). The new venture, which will have a registered capital of 30 million yuan (US$4.7 million), will focus on petroleum product sales. Beiqi Foton will invest 11.7 million yuan (US$1.8 million), in the JV, giving it a 39% stake, while PetroChina will invest 15.3 million yuan (US$2.3 million) and get a 51% stake. The remaining 10% will be owned by a third partner. Beiqi Foton is involved in the production of alternative fuel vehicles, including buses that are powered by compressed natural gas (CNG). (August 19, 2011)