The “Strong Chai Xing Yu” Strategic Breakthrough Yuchai Foundry Center Founded

A few days ago, Yuchai held the groundbreaking ceremony for its Foundry Center in Area A of Yuchai Industrial Park. The project spans a total of 1,800 mu and is set to become Asia's largest diesel engine casting production base. Once completed, it will produce 190,000 tons of high-strength, thin-walled, high-quality diesel engine blocks and cylinder heads annually. This facility will cover a wide range of engine sizes, from 0.8 liters up to 12 liters, supporting both current and future Yuchai models across micro, light, medium, and heavy-duty segments. Notable figures attended the event, including the Secretary of the Yulin Municipal Committee of Civilization, Mayor Jin Xiangjun, Chairman of the CPPCC Lü Jian, Deputy Secretary of the Municipal Party Committee Yu Xingxiang, Deputy Director of the Standing Committee of the Municipal People’s Congress Liu Shengfu, and other key officials. They participated in the ribbon-cutting ceremony and laid the foundation stone for the project. The event was hosted by Executive Deputy Mayor Liu Zifu. The Yuchai Foundry Center is designed with a high starting point and strict standards, representing a major technological upgrade for Yuchai's foundry operations. Key processes use advanced imported equipment, while auxiliary systems are equipped with domestic top-tier machinery. This creates a highly efficient, high-quality, and environmentally friendly production line. The project is planned in two phases, with the first phase covering around 1,000 mu and an investment of 960 million yuan. Three casting lines will be built, with the first expected to go into trial production in December 2009, followed by the second in 2010 and the third in 2012. Upon completion, the project will meet 15% to 30% annual market growth demands and elevate Yuchai’s overall manufacturing capabilities to world-class levels. In May this year, Yuchai officially joined the United Nations Global Compact, pledging to uphold its ten principles. In June, it released its 2007 Sustainability Report, which received widespread recognition and praise from the global community. The construction of the Foundry Center reflects Yuchai’s commitment to "Green Development, Harmony, and Win-Win" philosophy, demonstrating its dedication to social responsibility. The center integrates green practices, energy efficiency, and reduced labor intensity through automation and advanced technology. Five key laboratories, including melting, core making, and modeling, utilize highly automated methods to shorten production time, improve quality, and reduce costs. The melting department has innovated by using a single electric furnace instead of traditional cupolas, improving cast iron quality and reducing pollution. The modeling department employs robotic cores to enhance precision, leading to lighter and more cost-effective castings. Additionally, the center utilizes Yuchai’s patented technology for residual heat recovery, further saving energy and improving environmental performance. Over the past three years, Yuchai has made significant progress toward internationalization, expanding its industrial layout, capital operations, management innovation, product development, and talent training. In 2006, sales reached 14.1 billion yuan, with over 360,000 diesel engines produced and sold. By 2007, sales exceeded 18 billion yuan, with more than 500,000 units sold, maintaining the top position for seven consecutive years. This year, the company has continued its strong and stable growth, with sales expected to rise by 37.5% in the first half of the year, achieving more than half of its annual goals ahead of schedule. The Yuchai Foundry Center is one of the most significant investments in Yulin and Yuchai. Its construction marks a major breakthrough in the city’s strategy of “Strong Chai Xingyu.” Local authorities have shown strong support, ensuring the project achieves early start, early production, and early economic benefits. The Yuchai Industrial Park Working Committee and Management Committee are committed to improving service quality and work efficiency, creating a favorable investment environment to accelerate the project’s progress.

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