10:29 AM EST, 02/20/2025 (MT Newswires) -- China Yuchai International ( CYD ) said Thursday it signed a cooperation agreement with Kim Long Motor, a unit of Vietnam's FUTA Group.

Under the deal, Yuchai will provide technology licenses, supply components, and support the construction of an engine factory at a Kim Long Motor site in Vietnam by providing technical services for equipment installation and commissioning at Kim Long Motor's expense.

Yuchai said it granted Kim Long Motor technology licensing rights for some model engine series, which will be mainly for trucks, buses and other commercial vehicles.

Kim Long Motor will also get exclusive sales rights for the engines in Vietnam, as well as priority sales rights in other ASEAN countries and South Korea. Additionally, the company will have aftermarket service rights in these markets.

The licenses are valid for 15 years and the licensing fees are $28 million. Yuchai will also supply all engine assembly parts and service kits for the engines manufactured in Vietnam, the company added.

Shares of China Yuchai ( CYD ) were rising past 27% in recent trading.

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