Light-truck maker Qingling Motors will diversify into heavy-truck production with joint venture partner Isuzu Motors of Japan to tap growing demand in China.
The H share, based in Chongqing, has spent 400 million yuan (about HK$375 million) to build a production line to make Isuzu's F-series heavy trucks with 50 per cent domestic content.
It will also adapt part of its existing facilities to produce the new models, whose weight ranges from 15 tonnes to 30 tonnes.
The project will have basic annual production of 20,000 units and be operational in June.
Qingling and Isuzu jointly announced the plan in Hong Kong after the H share posted a 13.1 per cent gain in net profit to 510 million yuan for the year to December 31.
Turnover rose to 4.41 billion yuan, up 18 per cent from 3.74 billion yuan in 1999.