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Contract between Shaanxi Auto and Sinopec to Expand the Market

Date:2012-11-07 Author:Daniel Source:www.chinatrucks.com

www.chinatrucks.com. A strategic cooperation agreement between Shaanxi Auto and Sinopec Anhui Subsidiary has been signed recently. The agreement shows active responses to the policy of the government to develop new energy and improve the environment. A consensus has been reached in the cooperation of new energy vehicles such as LNG and CNG heavy truck used in logistics, civil engineering and other areas.

Shaanxi Huainan SPV Corporation is the only company of Shaanxi Auto to produce new energy SPV vehicles in eastern China. The company covers development, production and sales of new energy SPV vehicles and parts. 1.59 billion Yuan was invested into the construction of new energy SPV vehicle production base with the annual productivity of 50,000. The assembling shop has been officially put into use in Jun., 2012 and the first SPV vehicle has been successfully conducted with trial assembling on Jun. 28, 2012. Presently, the productivity of the first-stage construction will reach 20,000 and the second-stage construction will be completed in 2015 with the annual productivity of 50,000. Because each new SPV will be equipped with 100L LNG fuel, therefore, it will lead a prospective future for the LNG gas refueling market.

In the agreement, the two parties shall co-create the developing environment for CNG and LNG industry to get policy supports from Shaanxi government in terms of promotion and construction of LNG vehicles and gas stations. No less than 5 gas stations will be built in Huainan in 2013 and over 20 within Anhui province. 40 more gas stations shall have been competed by the end of the 12th five-year plan. Consensus also is reached in policy of heavy truck end users and promotions.

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