According to the officials, state-owned China National Heavy Duty Truck Group Co. Ltd. has fixed its sights on establishing a bus assembly plant in the Changhua Coastal Industrial Park in west central Taiwan.The kicker is at the end of the article:
The state-owned enterprise, also known as Sinotruk Group, plans to invest NT$5 billion (US$158.7 million) in establishing the factory. The project, if approved, would represent the largest investment in Taiwan by a mainland Chinese company since the government opened the island up to mainland investment in July of last year.
MOEA officials stated that top executives of Sinotruk visited Taiwan late last year to study the planned investment project and that the company is currently carrying out a more detailed assessment of the plan.
The investment is nice, but does not do much for the island's technology base, since it is merely an assembly plant with the high value technical work done elsewhere. Sinotruk was actually founded in 1935 under the KMT government based on an earlier automobile firm in Jinan, Shandong.
The officials pointed out that Taiwan’s bus market is nearly saturated, so most of the buses produced at the planned factory in Changhua would be exported to the U.S. and Southeast Asia.
The higher value of “made in Taiwan” products compared to “made in China” goods was an important factor in Sinotruk’s decision to move to set up a production plant on the island, the officials said.
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