WARRENVILLE, Ill. (Sept. 28, 2009) – NC2 Global LLC and Anhui Jianghuai Automobile Co., Ltd. (600418: SHH) have signed a framework agreement to potentially establish a joint venture in China which would develop, manufacture and sell trucks and truck parts primarily in China and certain export markets.
NC2 is the recently announced global commercial truck joint venture between Navistar International Corporation (NYSE: NAV) and Caterpillar Inc. (NYSE: CAT). Anhui Jianghuai Automobile Co., Ltd. (JAC) is a manufacturer of automobiles and trucks based in Anhui Province of the People’s Republic of China (PRC).
The proposed 50/50 joint venture would take advantage of the financial strength, technology know-how and global distribution network provided by NC2 and the existing medium duty and heavy-duty truck business of JAC, including its existing manufacturing facilities in PRC.
“If we are able to reach a definitive agreement, this proposed joint venture would directly support NC2’s strategy to produce and market a full line of commercial on-highway trucks for markets outside of North America,” said Al Saltiel, president of NC2. “The opportunity to leverage existing JAC manufacturing facilities and business relationships has the potential to accelerate NC2’s global business plans. We look forward to working with JAC to quickly bring exciting new products to market.”
There is also consideration that the joint venture would establish its own research and development center in PRC, utilizing a portion of JAC’s existing R&D facilities.
“The proposed agreement offers JAC the opportunity to enhance its productive technology and research and development capacity,” said An Jin, general manager of JAC. “JAC views this potential venture with NC2 as a significant opportunity to continue to develop our truck business.”
The framework agreement contemplates that NC2 and JAC will work to finalize the joint venture by mid-2010, with the exact date depending on the progress of negotiations, due diligence, as well as corporate and regulatory approvals.
About NC2 Global LLC
NC2 Global LLC is a 50/50 joint venture between Navistar (NYSE: NAV) and Caterpillar (NYSE: CAT) which will develop, manufacture and distribute commercial trucks globally, outside North America. NC2’s product line will feature both conventional and cab-over truck designs and will be sold under both the International® and Cat® brands. More information is available at www.nc2.com.
About Anhui Jianghuai Automobile Co., Ltd.
Anhui Jianghuai Automobile Co., Ltd. is principally engaged in the development, manufacture and sale of automobiles and related parts. The Company offers business vehicles under the brand name of Refine, light and heavy trucks, sports recreation vehicles (SRVs) under the brand name of Rein, carriage chassis and cars. More information is available at http://jacen.jac.com.cn.
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse™ brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.
For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. More information is available at http://www.cat.com.
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Web site: www.nc2.com
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