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In the past two years or more since the Wenchuan Earthquake, Beijing has completed 108 projects that support the construction of quality and quantity, and the method of aiding construction has also changed from short-term counterpart support to long-term counterpart cooperation mechanism. On September 26, 2010, Foton Shifang Special Purpose Vehicle Co., Ltd., jointly established by Beiqi Foton Motor and Sichuan Tengzhong Heavy Industry Co., Ltd., started construction in the “Beijing-Shifang Industrial Park†in Sichuan Province. The Futian Shifang Special Vehicle Project invests 200 million yuan and plans to build an annual output of 5,000 special-purpose vehicle production bases. Foton Motor also signed the "Strategic Cooperation Framework Agreement" with the Shifang Municipal Government. The long-term cooperation between Beijing and Shifang has broad prospects.
As a commercial vehicle company with the largest domestic self-owned brand, in March last year, Foton Motor organized the “Partnership Supporting Sichuan Province Parts and Components Enterprise Strategic Cooperation Promotion Meeting†to help key parts and components companies in Shifang District to promote products. This is Foton Motors. Taking auto parts as the starting point, support Shifang’s economic development initiatives.
The cooperation between Futian and Tengzhong Heavy Industry is based on the advantages of Foton in auto production management, marketing management, R&D, and technology, as well as the advantages of Tengzhong Heavy Industry in Sichuan's local production, operation and marketing channels, and jointly cooperate in the construction of special vehicles in Shifang. base. The cooperation method is Foton Motors providing automotive chassis, capital, and technology. Tengzhong Heavy Industry provides plant, equipment, and funds to set up a joint-venture vehicle factory. The project investment is 200 million. It is estimated that after completion, it can realize annual sales income of 1.5 billion yuan, profits and taxes of 150 million yuan, and more than 1,000 new jobs.
The agreement signed between Foton Motor and Shifang Municipal Government also stipulates that in the next 5 to 10 years, Foton Motor will build a complete vehicle and auto parts production base in Southwest China, with a total planned investment of 3 billion yuan. The first phase is expected to invest 500 million yuan, planning and construction of an annual output of 80,000 light trucks and construction vehicles base, plans to start construction by the end of 2012, will achieve sales of 4 billion yuan.