Unveiling Vietnam’s First Professional Automotive Engine Manufacturing and Assembly Plant

Capacity of Over 40,000 Engines/Year, Equivalent to Just 3 Minutes/Engine

This is the first factory in Vietnam to own a modern production line capable of manufacturing engines that meet international standards, serving not only the automotive industry but also other critical sectors.

Kim Long Motor Hue Joint Stock Company announced that the groundbreaking for the Yuchai engine manufacturing plant took place on August 23, 2024, immediately following the signing of a comprehensive strategic cooperation agreement between Kim Long Motor and Yuchai Group, a leading global engine manufacturer. After more than 12 months of rapid construction with unwavering determination, the modern and synchronized factory system has been completed, successfully tested, and officially rolled out its first engine.

The Yuchai engine manufacturing plant is built on an area of 6.5 hectares, with an initial investment of $260 million. The modern and synchronized production line, with an automation level of up to 90%, allows the factory to produce a diverse range of engines, including automotive engines, marine engines, agricultural machinery engines, and generator engines.

In the initial phase, the factory has completed 2.5 hectares dedicated to the production and assembly of internal combustion engines (Diesel) with a capacity of over 40,000 engines/year, equivalent to just 3 minutes per engine.

The factory employs state-of-the-art technology, optimizing and ensuring precision in every production stage. The entire production line operates on a Smart Factory platform with a digitization level of up to 90%, enabling 100% traceability of technical data for each engine code.

In the second phase, Kim Long Motor and Yuchai Group will continue investing in automated production lines to manufacture core engine components such as engine blocks, cylinder heads, crankshafts, camshafts, and connecting rods, as well as localize supporting components like air distribution systems, power transmission, lubrication-cooling, and drive systems.

Additionally, Kim Long Motor will launch a forging and stamping plant with modern production lines, thereby enhancing production capacity and increasing the engine localization rate to 80%. The synchronized operation of the Yuchai engine manufacturing plant and its supporting industrial factories will create a strong breakthrough in the domestic automotive manufacturing capabilities.

This event signifies a remarkable leap forward for Vietnam’s automotive industry as Kim Long Motor successfully collaborates in the production and manufacturing of engines right in Vietnam. The technology production lines at the Yuchai engine manufacturing plant are directly transferred and supervised by Yuchai Group’s international experts and experienced engineers, ensuring synchronization and optimal performance.

The production process strictly adheres to international standards, laying a solid foundation for product quality. From here, the engines produced by the factory will not only meet domestic demand but also aim for export to the ASEAN, South Korea, and Middle Eastern markets.

Roll-out of the First Two Engines in Hue

At the event, the first two engines, Yuchai K11 and Yuchai Y24, were completed and officially rolled out. This marks a crucial step in mastering technology and realizing the goal of bringing internationally standardized “Made in Vietnam” automobiles further into global integration.

Furthermore, the factory will expand its product range by introducing new engine models such as Yuchai A07N, Yuchai S04, Yuchai S07, and Yuchai K12L to support Kim Long Motor’s commercial vehicle production and assembly activities.

The roll-out of the first engine at the Yuchai engine manufacturing plant is not only a significant milestone affirming Kim Long Motor’s production capabilities and mastery of core technology but also contributes to the development of Vietnam’s mechanical engineering and automotive industry.

At the ceremony, Mr. Đào Viết Ánh, General Director of Kim Long Motor, shared: “The synchronized operation of the Yuchai engine manufacturing plant, the large-scale stamping factory, and the supporting industrial factories will create a strong breakthrough in domestic industrial production and manufacturing capabilities. This not only enhances the scientific and technical content and self-reliance in production but also serves as a key factor in achieving an 80% engine localization rate.

This will position the Kim Long Motor Hue Automobile Production and Assembly Industrial Park as a leading automotive production center in Southeast Asia. Once all factories in the industrial park are operational, they will provide a strong impetus for local socio-economic development, creating tens of thousands of stable jobs and contributing to the formation of a modern and dynamic industrial ecosystem in the ancient capital.”

A Significant Milestone for Vietnam’s Automotive Industry

Speaking at the inauguration and operation ceremony of the engine factory in Hue, Mr. Lý Hán Dương, Chairman of Yuchai Group, emphasized the importance of this event as a milestone in the cooperation between Chinese and Vietnamese enterprises in the field of high-end equipment manufacturing. “The official completion and operation of the factory today are of great significance as it is the first professional automotive engine factory in Vietnam, serving as a strategic foundation to enhance the position and brand value of King Long Motor and Yuchai in Vietnam and the entire ASEAN market,” said the Chairman of Yuchai Group.

“In the future, our new factory will continue to be the strong ‘heart’ of Vietnam’s automotive industry, contributing to bringing ‘Made in Vietnam’ automobiles to the global stage. The cooperation between Kim Long and Yuchai is a complementary force, a synergy of dreams, and a powerful testament to the deepening economic and trade relations between China and Vietnam. We are confident that, with this modern factory, our strategic partnership will become increasingly strong, our cooperation will yield more fruitful results, and our shared endeavors will undoubtedly thrive,” shared the Chairman of Yuchai Group.

Congratulating Kim Long Motor Hue Joint Stock Company on the completion of the Yuchai engine manufacturing plant as part of the Kim Long Motors Hue Complex Project, Vice Chairman of Hue City People’s Committee Phan Quý Phương affirmed that this event marks a significant milestone not only for Kim Long Motor but also for Vietnam’s automotive industry, aiming to realize the Vietnam Automotive Industry Development Strategy approved by the Prime Minister in Decision No. 1168/QĐ-TTg dated July 16, 2014.

According to the Vice Chairman of Hue City People’s Committee, the Kim Long Motors Hue Complex Project is a key project of Hue City that will positively contribute to the development of the automotive industry, creating a ripple effect to attract automotive supporting industries to invest in the city, thereby shifting the economic structure, increasing budget revenue, and providing employment for local labor.

To expedite the completion of the entire Kim Long Motors Hue Complex Project, the Vice Chairman of Hue City People’s Committee requested the investor to focus resources with high responsibility and dedication to complete the entire project and put it into operation according to the approved investment plan and schedule.

“On behalf of the local authorities, we commit to directing relevant departments, agencies, and localities to actively support and create the most favorable conditions for the investor to implement the project; in the immediate future, we will conduct land clearance for the remaining 200 hectares to ensure the entire project is promptly operational, positively contributing to the local socio-economic development,” said the Vice Chairman of Hue City People’s Committee.