WABCO Reports Multi-Year Development and Supply Agreement With Yuchai, China's Largest Manufacturer of Diesel Engines for Truck

Published in Stocks and Investing on Thursday, December 10th 2009 at 4:11 GMT by Market Wire
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BRUSSELS, BELGIUM--(Marketwire - December 10, 2009) - WABCO Holdings Inc. (NYSE: [ WBC ]) [[ www.wabco-auto.com ]], a global technology leader and tier-one supplier to the commercial vehicle industry, today announced that WABCO and Yuchai Machinery Company Ltd. have completed an agreement for product development and the long-term supply of twin-cylinder compressors for diesel engines to be mounted on heavy duty trucks. Yuchai is China's largest manufacturer of diesel engines for commercial vehicles for the past eight consecutive years and one of China's leading exporters serving more than 50 countries.

WABCO's twin-cylinder compressor technology features the company's worldwide modular (WWM) design, a benchmark for the commercial vehicle industry that improves cost effectiveness and speeds time to market for engine manufacturers and original equipment makers. Through several innovative engineering breakthroughs, these compressors will weigh less and further enhance performance while increasing fuel efficiency and improving environmental friendliness. To be mounted on Yuchai's YC6K series engines, WABCO compressors will be produced at WABCO's world-class manufacturing facility located in China. Trial production will begin in 2010 and series production in early 2011.

Based on more than 30 patents, Yuchai's YC6K series engines represent an industry breakthrough by successfully combining cooling technology with high strength materials, enabling the engines to meet Euro VI emission requirements while significantly prolonging the engine's lifetime.

"We are proud to partner with Yuchai as they grow their leading position in high grade diesel engines in China and internationally through adoption of advanced technologies and environmental sustainability," said Leon Liu, WABCO President, Asia Pacific. "This long-term agreement with Yuchai is another major step forward for WABCO as we continue to expand our compressor business in China, powered by our local people and capabilities."

"This significant new business demonstrates our continuous growth as we focus on delivery of highly reliable and innovative compressor products," said Nikhil Varty, WABCO Vice President, Compression and Braking. "Our agreement with Yuchai also confirms WABCO's number one position in air compression technology globally, and particularly in China, as we further leverage our ability to provide energy savings and clean air solutions to better serve customers through our outstanding network of product development, sourcing and manufacturing that spans all regions worldwide."

About WABCO

WABCO Vehicle Control Systems (NYSE: [ WBC ]) is a leading supplier of safety and control systems for commercial vehicles. For over 140 years, WABCO has pioneered breakthrough electronic, mechanical and mechatronic technologies for braking, stability, and transmission automation systems supplied to the world's leading commercial truck, trailer, and bus manufacturers. With sales of $2.6 billion in 2008, WABCO is headquartered in Brussels, Belgium. For more information, visit [ www.wabco-auto.com ]

About Yuchai

Yuchai Machinery Company is China's largest manufacturer of diesel engines for commercial vehicles and has ranked number one in the industry for the past eight consecutive years. Yuchai is also one of China's leading exporters serving more than 50 countries. During the Beijing Olympics, Yuchai was the only local supplier of diesel engines for Beijing city buses that satisfied Euro IV emission requirements, successfully contributing to "Green Olympics" together with Cummins. Yuchai's latest innovation is the YC6K series engine. It will be produced by Y&C Engine Company Ltd. in Wuhu, Anhui province, the newly formed joint venture of major influential automotive industry players Yuchai Machinery Company Ltd., China International Marine Containers (Group) Company Ltd., and Chery Automobile Company Ltd. With registered capital of RMB 500 million and expected total investment exceeding RMB 1.5 billion, the joint venture will ultimately build up annual capacity of 200,000 diesel engines for heavy duty commercial vehicles. The joint venture's vision is to provide diesel engine assemblies and components that are cost competitive and high quality through application of innovative technologies and advanced management concepts.

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WABCO Reports Multi-Year Development and Supply Agreement With Yuchai, China's Largest Manufacturer of Diesel Engines for Truck