Navistar International Corporation (NYSE: NAV) has announced that Anhui Jianghuai Navistar Diesel Engine Co., Ltd. (JND), the company's joint venture with Chinese truck maker Anhui Jianghuai Automobile Co. Ltd. (JAC), has begun engine production at its new facility in Hefei, China.
The new one-million-square-foot facility houses an administrative office, a research and development center, and a machining and assembly facility capable of producing 200,000 Euro IV and Euro V compliant engines per year. The plant is also designed to reduce energy consumption by 30 percent through the latest in heating and cooling technologies.
JND engine operations were launched in 2013 in an effort to meet the emerging needs of the Chinese commercial truck market by providing JAC with access to Navistar's emissions compliant engine technology. Prior to the opening of the plant, engine localization and assembly was conducted at JAC's facilities in Hefei. These operations will transition to the new joint venture facility, also located in Hefei.
"We are excited to celebrate this important milestone with our partner JAC and our collaborative efforts to bring the latest in clean-engine technology to China have resulted in a strong, successful and profitable operation from the very start," said Troy Clarke, president and chief executive officer, Navistar International Corporation. "We look forward to supporting China's clean-energy and fuel efficiency efforts as we pursue additional growth opportunities with JAC."
"Through our partnership with Navistar, JND is bringing advanced diesel technology and vehicle integration to our customers," said An Jin, Chairman, JAC Motors. "These products offer enhanced durability and higher fuel efficiency to enable JAC to export globally and continue leading in China's commercial vehicle market."
JAC and Navistar received formal approval for their joint venture from China's National Development and Reform Commission (NDRC) in August 2012. In May 2013, engine manufacturing for the joint venture began at JAC's facilities. The first engine was a JAC-designed 2.8-liter diesel engine. JND production of its 3.2- and 4.8-liter engines then began in the fall of 2013.
JND currently produces 2.8-, 3.2-, and 4.8-liter engines. The engines offer up to 88kW power at 3,600 rpm and 280 N.m torque @ 1800-2800 rpm; 118kW power at 3,000 rpm and 450 N.m torque at 1,500-2,200 rpm; and 140 kW power at 2,200 rpm and 450 N.m torque at 1,200-1,600 rpm.
JND is planning to add a 7.2-liter diesel engine to its product line in 2016 and will continue to explore the possibility of adding more engine products.