19 July 1999

Volvo Penta has begun construction of a diesel engine and generator set assembly plant in Wuxi, China. Volvo Penta will account for 70% of the $9 million joint-venture investment, with its partner Wuxi Diesel Engine Works.

The joint-venture company, Wuxi Da-Hao Power Company, is building a completely new assembly plant with the capacity for assembling 5000 engines a year and a five-year target of 4000 units per year. The plant, which has a total area of 15,000 sq. m, is scheduled to be ready for production in January, 2000. The plant will accommodate the assembly and distribution of Volvo Penta's diesel engines for generator sets.

Two years ago, Volvo Penta entered into a joint-venture agreement with Wuxi Sida Industrial Enterprise Company prior to the establishment of an assembly plant. In addition to engine assembly operations, the agreement includes the transfer of technology and systems from Volvo Penta. This transfer of know-how extends to logistics and quality control, purchasing routines and engineering design and production technology. The training of technicians and other personnel from Wuxi has been in progress at Volvo Penta in Sweden for more than 12 months. The investment in technician training programs and the transfer of management know-how amounts to $1 million.

Source: Diesel Progress