New Automobile Engine Firm Revs upBeiqi Futian Co Ltd, known for building farm vehicles, has established Beijing Futian Engine Co to assemble automotive engines, according to China Daily."Engine production is the key to the auto industry, and engine technology is at the core for upgrading and developing automobiles," said Yang Hua, an official with the State Machine-Building Bureau. Beiqi Futian was one of 10 State-owned enterprises (SOEs) behind the formation of Beijing Futian Engine Co. The others included the Beijing Internal-combustion Engine Group and the Beijing Tractor Manufacture Plant, which are close to bankruptcy because of the sluggish demand for their products. Beiqi Futian offered capital, technology and sales assistance, while its partners provided technological support for Beiqi Futian's new subsidiary. The Beijing Engine Co got off the ground with 70 million yuan (US$8.43 million) in State-owned assets. It created 2,000 jobs in Beijing. "While there is an oversupply of Chinese-built automobile engines, high-tech engines that are less polluting are in short supply. That means there is a large potential market for us," said Wang Jinyu, Beiqi Futian general manager. In 1996, Beiqi Futian merged 100 State-owned enterprises from 13 municipalities, provinces and autonomous regions, establishing a shareholding company that was listed on the Shanghai Exchange Market in June 1998. "We are devoted to the manufacture of economy automobiles, including light trucks, freight cars and coaches that are affordable to ordinary Chinese people, especially people in the rural areas," Wang said. Statistics from the China Farm-use Vehicle Association indicate that for the past four years Beiqi Futian has been China's leader in output and sales of four-wheel farm vehicles. With the approval of the State Machine-Building Bureau, Beiqi Futian ventured into automobile manufacturing in 1998. Last year, its output reached 64,000, making it the No 1 domestic farm-use auto manufacturer in China. Municipal government officials said total sales by Beiqi Futian reached 350 million yuan (US$42.17 million) in 1999, a 59.1 per cent increase over the previous year. During the first four months of this year, Beiqi Futian sold 24,343 automobiles, accounting for 68 per cent of the total output value of the Beijing auto industry. Beiqi Futian also manufactures building materials, building machines and farm equipment. It is also in the real estates business. |
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