Linhai Group

August 01, 2003

Multi-Purpose Engine Manufacturing Joint Venture in Jiangsu Province, China
Manufacturing Transferred from Japan to China

Yamaha Motor has reached a 3-way agreement with the Chinese motorcycle engine maker Jiangsu Linhai Power Machinery Group Corporation (representative: Lu Haimin; Taizhou City, Jiangsu Province, China) and Yamaha Motor's motorcycle manufacturing joint venture Jiangsu Linhai Yamaha Motor Company Limited, known as "LYM" (representative: Lu Haimin; Jiangsu Province), to establish a new company to produce multi-purpose engines. The agreement will be officially signed in Shanghai on August 1, 2003.

The new company, to be named "Yamaha Motor Taizhou O.P.E. Company Limited" (O.P.E. stands for "outdoor power equipment") will be established in Taizhou City, Jiangsu Province in August of 2003 to produce four-stroke multi-purpose engines. The new company will be capitalized at US$3.3 million (approximately 400 million yen), 25% of which will be invested by Yamaha Motor Co., Ltd., 70% by LYM, and the remaining 5% by Jiangsu Linhai Power Machinery Group Corporation. LYM, itself a joint venture between Yamaha Motor Co., Ltd. and Jiangsu Linhai Power Machinery Group Corporation, manufactures and markets complete motorcycles and engines under the Yamaha brand name.

Jiangsu LINHAI Group is a transtrade and transregional enterprise group which consists of over sixty member units with the integration of scientific research, industry, trade, banking and institutions of higher learning. Being one of the largest state-owned enterprises and assigned motorcycle-engine and validated motorcycle manufactures under the State's central authorities, Jiangsu LINHAI Power Machinery Corporation (Its former name is Taizhou Forestry Machinery Works of China National Forestry Machinery Corporation) plays the role of a nucleus.

Founded in year 1956, it has a history of more than forty years in developing and manufacturing small engines and power machinery. 1600 trained men and women are employed now, among whom 400 and more are technical persons of different specialties. It is in possession of the great capability of developing product, furnished with 600 sets of various equipment and installations, including a manufacturing system composed of twelve specialized and flexible lines, a measuring and inspecting system made up of national first-grade measuring equipment and a researching and developing system constituted by a power test center and a CAD developing center and owning assets of 1.2 billion yuan, 4 hundred million yuan of which are fixed assets.

The main products fall into seven categories as motorcycle-engines, small gasoline engines, motorcycles, mopeds, forestry machinery, fire-fighting machinery and sprinklers for sports ground, comprising some 100 types and models.

The dominants, the quality of which gains the lead at home, are entitled National Satisfying Product for Consumers by the Consumers' Committee of the China National Quality Management Association. All the products command a ready sale at home and abroad.

Having been managed to import technology and foreign investment, such joint ventures as Jiangsu LINHAI-YAMAHA Motor Co.,Ltd., Jiangsu LINHAI-Benteng Power Machinery Co.,Ltd., and Jiangsu Linkin Power Machinery Co.,Ltd. have been set up in succession. This has expanded the force of our corporation and has improved the technology and quality of its products as well.

LINHAI Joint-Stock Company Ltd. was founded and LINHAI stock succeeded in coming into the market in 1997 by means of investing part of its property and the mode of raising a fund, which provide more strength for the development of our group.

In 2000, the joint venture Jiangsu SUMEC-LINHAI Power Machinery Co., Ltd. was established, a program of unifying two powerful units and combining industry and trade to find foreign markets having been implements.

Linhai Group

Official announcement data of Yamaha Motor.

Linhai manufacturer is a joint venture with YAMAHA Company for specialized in produce power machinery such as Generators, Engine, Scooter, ATV Etc. Detailed: