On October 30, 2010, Shaanxi Yulin Municipal Government and Shaanxi Heavy Vehicle Co., Ltd. signed a cooperation framework agreement in Xi’an. Shaanxi Automobile and Yulin Dongfang Corporation jointly established a joint-venture in the Mahuangliang Industrial Park of Xiangyang District to build an annual output of 50,000 Shaanxi Auto New Energy. Special vehicle project production base, and a separate network of automobile logistics parks and natural gas refueling (gas) stations with 30,000 service scales.

It is understood that the total investment of the contracted project is 2.05 billion yuan, of which the investment plan for the Yulin Shaanxi Auto New Energy Special Vehicle Project is 1.35 billion yuan. It mainly constructs assembly plants, retrofit plants, bodywork plants, testing workshops, testing sites, and distribution centers. The project will be carried out in two phases. The first phase of the project will be completed by the end of 2010. By the end of 2011, it will have completed 20,000 production capacity, and in 2011 it will roll out 5,000 vehicles. The project will be fully completed in 2014, with an income of more than 20 billion yuan, a profit and tax of 800 million yuan, and employment of 6,000 people, and the recruitment of forestry forest personnel will be given priority under the same conditions. Shaanxi Auto boasts prominent advantages in heavy truck technology, management, and services. Yulin Dongfang Group has been rooted in Yulin for many years and has advantages in sales channels and relationships with major customers. The two sides have strong cooperation and broad prospects.

The Yulin Shaanxi Auto New Energy Special Vehicle Project is fully in line with the state's “12th Five-Year Plan” development plan to build advanced equipment manufacturing industry, and upgrade the strategic policy of transforming from a large industrial country to an industrial power. Shaanxi Auto and Shaanxi Heavy Industry are important industries, important enterprises, important projects and important products in Shaanxi's equipment manufacturing industry. The heavy trucks have developed to a new level and have reached the international advanced level. New energy vehicles are an important strategy for the development of the country's industries. The use of natural gas has the advantages of high reliability, high cost performance, and low operating costs. It is a bright spot for product optimization, upgrading and seizing the commanding height of the industry. The market prospect is very broad. The new energy special vehicle project settled in Yulin, which is an important embodiment of advanced manufacturing and advanced technology. It is a new highlight of Yulin's equipment manufacturing industry. Shaanxi Provincial Party Committee and Provincial Government will fully support the project's construction and development.

Yulin is the energy and chemical industry base in western China and the largest logistics transportation center in the northwest region. These unique conditions provide ample market development space for new energy vehicles. Shaanxi Auto is a leading enterprise in the automotive industry in Shaanxi. It is incumbent on Shaanxi Automobile to revitalize and develop the automotive industry in Shaanxi. Shaanxi Auto will make its due contributions to Yulin’s leap-forward development with innovative thinking and pragmatic style.

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