Automotive / Vehicle Engine Supplier-- | Deutz | Weichai | Yuchai

WEICHAI POWER: Foreign Investors Intends to Transfer 50% Stock of DEUTZ

In a panoramic network interactive platform WEICHAI POWER responded query of investors and expressed: In view of avoid commitments of horizontal competition for the actual controller, at present, the related parties to have an initial solution with Foreign investors that they will accept the Foreign investors’ 50% stock of DEUTZ, but the specific transferee, terms etc. are also need further discussion.

Previously, on September 13rd, 2011, WEICHAI POWER announced relevant issues about avoid horizontal competition of Shangdong Heavy Industry. Because WEICHAI POWER may create business competition with WEICHAI DEUTZ, Shandong Heavy Industry promise what WEICHAI POWER will be a only business operation and integration platform of Shangdong Heavy Industry for automobile and construction engine in the future, and urge WEICHAI group establish a working group to communicate and coordinate between Germany DEUTZ and WEICHAI POWER, to discuss related restructuring integration scheme about avoid possible business competition between WEICHAI POWER and WEICHAI DEUTZ  within 36 months in the future.

Shandong Heavy Industry belongs to State-owned Assets Supervision and Administration Commission of Shandong province, it is also a shareholder of WEICHAI Group, is the actual controller of WEICHAI POWER. WEICHAI DEUTZ is a joint venture company (WEICHAI Group and Germany DEUTZ each contributed 50%), and the WEICHAI DEUTZ main production is diesel engine.

WEICHAI POWER said the company will actively negotiate with related parties, promote this matter as soon as possible to complete, earnestly safeguard the interests of the company and minority shareholders.

WEICHAI POWER is mainly engaged in research, production and sales of engines, spare parts, heavy duty car, heavy duty truck vehicle axle, gearbox and other auto parts business.