Navistar International's joint venture with Chinese truck maker Anhui Jianghuai Automobile (JAC), Anhui Jianghuai Navistar Diesel Engine Co., Ltd. (JND), 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 CEO, Navistar. "We look forward to supporting China's clean-energy and fuel efficiency efforts as we pursue additional growth opportunities with JAC."
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.