BYD Spends 60m in Acquiring Sanxiang Bus
2009-07-29 Source：english.chinabuses.com
English.chinabuses.com: on Jul. 26. BYD Auto Co., Ltd. (hereinafter referred to as BYD), which is a listed company in Hong Kong stock market (1211.HK) made an announcement that it will make a one-off payment of RMB 60 m (about USD 8.78 m) to buy Sanxiang Bus, the bus assets of Midea, a well known manufacturer of electrical appliances in China. Thus, the indigenous automaker officially enters the bus building business.
BYD official in talks with Changsha Municipal Government
In 2005, eyeing the booming bus & coach business in China, Midea, the giant in China’s electrical appliances sector bought Sanxiang Bus, a 54-year-old bus builder in Hunan whose business was on a downhill. Last year, due to the restructuring of its business, Midea discontinued its bus building business.
Sanxiang bus
On Jul. 25 this month, BYD signed a cooperative agreement with Changsha Municipal Government. According to the agreement, the auto maker will set up its new production base, which will boast an annual production capacity of 400,000 units of buses and coaches. On the same day, BYD also inked a deal with Xi’an Municipal Government. In the provincial city of Shaanxi, the company plans to set up another production base which will roll out 400,000 units of F3 sedans and other types of passenger car models each year.
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