Jianghuai Auto (JAC) to invest 837 mln yuan in heavy-duty truck production

Anhui Jianghuai Automobile Co Ltd based in east China's Anhui province, a major producer of trucks and MPV and SUV, announces today that it will invest 837 million yuan in construction of 40,000-unit heavy and medium duty trucks plant.

Of the total investment, 647 million yuan will be used for fixed asset investment, and 190 for working fund.

The new plant, located in the Hefei Economic and Technical Development Zone, is designed to have construction term of 2.5 years, and start production in the third year.

It is expected to generate annual sales revenue of 4.48 billion yuan as start from the sixth year, total profits of 334.39 million yuan, and after-tax profits of 224.04 million yuan.

The company has also decided to make additional investment of 74. 64 million yuan in the Hefei Jianghuai Casting Co Ltd, expecting to hold 98.98 percent of the stake in the company.

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