Guangxi Yuchai Machinery Company Limited - Diesel Engines

Diesel engines are core products of Guangxi Yuchai Machinery Company Limited (“GYMCL”), a subsidiary of China Yuchai International Limited (“CYI”), a Bermuda holding company which was listed on the New York Stock Exchange in 1994.

The Business

GYMCL's primary manufacturing facilities are located in Yulin City in the Guangxi Zhuang Autonomous Region. GYMCL manufactures, assembles and sells diesel engines for light-duty, medium-sized and heavy-duty trucks, buses, cars and construction equipment in China. Currently, GYMCL is ranked the largest manufacturer of internal combustion engines and the largest manufacturer and exporter of medium and small engineering machinery.

In 2008, production capacity was approximately 443,750 units, based on 2.5 shifts five-day week.

Research & Development

GYMCL has committed substantial resources to continually improve the technology of its products and maintain the competitiveness of its products. GYMCL’s internal development effort focuses primarily on designing new products, improving manufacturing processes and adapting foreign technology to the Chinese market. GYMCL has committed 3% of its revenue annually to continually improve the technology of its products. In addition, GYMCL plans to continue to acquire advanced technology from Chinese research institutes, foreign engine design consulting firms and foreign diesel engine and engine parts manufacturers. As of December 31, 2008, GYMCL employed over 406 engineers (excluding supporting junior engineers), approximately 371 of whom were devoted to research and development, product enhancement and new designs while the remaining were in the production department and after-sales service. 

In 2007 and 2008, GYMCL’s research and development efforts were focused on the development of new products such as heavy duty engines 6T and 6K and National IV and National V prototype products.

Quality Assurance

GYMCL provides a comprehensive range of after-sales services to its customers and recognizes that reliable after-sales service is an important part of maintaining its market competitiveness. GYMCL has a nationwide network of sales offices and authorized customer service centres providing repair and maintenance services, spare parts, retrofitting services and training to customers.