China Yuchai (CYI), a subsidiary of Hong Leong Asia and China’s leading engine manufacturer, has transferred manufacturing technology and exclusive distribution rights for Yuchai engine products in Southeast Asia and South Korea to Vietnam’s Kim Long Motor.

This event marks a significant milestone following the comprehensive strategic cooperation agreement between Yuchai and Kim Long Motor. It also followed a groundbreaking ceremony for the Kim Long Hue engine manufacturing factory and the launch of the KimLong99 brand bus, which features the new-generation Yuchai K11 engine, at the Kim Long Motor Hue Industrial Park

The exclusive licensing agreement covers not only the transfer of engine manufacturing technology but also technical services for building digital systems and the provision of production machinery and equipment at the Kim Long Hue engine manufacturing factory.

This factory represents a $260 million investment and features an automation level of over 90%. It will produce a range of engines for various applications, including engines for automobile manufacturing, marine activities, power generators, agricultural machinery and civil construction machines.

The partnership between Kim Long Motor and Yuchai aims to boost local production capacity and enhance the image and reputation of Yuchai’s high-quality engines in the region, executives said.

"We expect this partnership to meet growing demand for engines in Vietnam and the regional market,” said Mr Qiwei Wu, CEO of China Yuchai.

“We are embarking on an exciting journey to expand market opportunities for Yuchai engine products in Vietnam and the region. This not only contributes to the development of Vietnam’s automotive industry but also strengthens the friendship and cooperation between Vietnam and China,” said Mr Dao Viet Anh, a director of Kim Long Motor.