Kim Long Motor and Yuchai launch new engine plant in Vietnam
Kim Long Motor Huế and Yuchai, a leading Chinese engine manufacturer, have officially signed a comprehensive strategic partnership to establish a new engine manufacturing plant in Vietnam. This landmark collaboration represents a significant development for both companies and marks a pivotal moment for the Vietnamese automotive industry.
The signing ceremony, held on August 23, 2024, was attended by key officials from the central government, Thừa Thiên Huế province, and representatives from both Kim Long Motor and Yuchai.
The new engine manufacturing plant, located in the Kim Long Motor Huế Automotive Production and Assembly Industrial Zone within the Chân Mây – Lăng Cô Economic Zone, represents a USDD260 million investment. The project will be executed in two phases, with the first phase focusing on the production of various engines for the automotive industry. The plant is expected to begin operations by the second quarter of 2025, with an automation level of up to 90%.
The facility will produce a diverse range of engines, including those for automobiles, marine applications, power generators, agricultural machinery, and construction equipment. In its initial phase, the plant will prioritise the production and assembly of internal combustion engines (diesel), compressed natural gas (CNG) engines, and electric engines, with an annual capacity of more than 12,000 units, which will increase in subsequent years. The second phase will expand production to include axles, gearboxes, and automotive drivetrain systems.
In addition to serving the domestic market, the plant aims to export its products to the ASEAN region, South Korea, and other international markets. This expansion is expected to significantly enhance Kim Long Motor’s technological capabilities and increase the localisation rate, allowing the company to integrate more deeply into the global supply chain.
Speaking at the ceremony, Võ Phi Hải, vice chairman of the Board of Directors and CEO of Kim Long Motor, stated, “The Kim Long Huế Engine Manufacturing Plant will be a game-changer for Vietnam’s automotive industry, allowing us to master advanced manufacturing technologies and establish Kim Long Motor as a leading brand both in Vietnam and globally.”
Phan Quý Phương, vice chairman of the Thừa Thiên Huế Provincial People’s Committee, also praised the project, emphasising its role in the region’s economic development. The project is expected to create thousands of jobs for local residents and contribute significantly to the province’s industrial growth.
In addition to the groundbreaking ceremony, Kim Long Motor unveiled its latest sleeper bus model, the Kim Long 99, equipped with Yuchai’s new K11 engine. The company also announced the delivery of the first 60 units from a 600-unit order placed by major transport companies, including FUTA Bus Lines, Ha Son Company, and Tan Phat Dat Company.
