Business OpportunitiesM&M, Yueda Group to invest $40 mn in China
Farm equipment and utility vehicle maker Mahindra & Mahindra (M&M) today said its joint venture with China"s Yueda Group will invest around $40 million (Rs 188 crore) in China to set up a new R&D centre, engine plant and in modernising its tractor unit at Yancheng.
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The JV--Mahindra Yueda (Yanchang) Tractor Company (MYYTCL)--was set up in 2008 after Mahindra & Mahindra (M&M) acquired a majority stake in Yueda Group subsidiary, Yancheng Tractors. M&M currently holds 51 per cent stake in the JV.
"The total investment is about $40 million, out of which the R&D centre and manufacturing plant will have an investment of USD 18 million," M&M said in a statement.
The tractor plant at Yancheng currently has a capacity to produce 38,000 units annually, ranging from 16 horse power (HP) to 125 HP.
"The modernisation of tractor plant will improve productivity and quality and consolidate the Yancheng manufacturing operations," it said.
Commenting on the investment plan, Mahindra Group Vice-Chairman and Managing Director Anand Mahindra said, "I am pleased to see the high level of commitment of MYYTCL to bring superior products for the Chinese customers, which is being reinforced by the investment decisions taken by the two partners."
Yueda Group Chairman Chen Yunhua said with the new investment MYYTCL will increase its presence in the Chinese agricultural machinery market.