China Jianghuai gets OK for $133 mln truck project

SHANGHAI, Nov 29 (Reuters) - Anhui Jianghuai Automobile Co 600418.SS, a mid-sized Chinese auto maker, said on Thursday it has obtained regulatory approval to invest 837 million yuan ($113 million) in a truck manufacturing project.

Jianghuai Auto said the facility would be able to make 40,000 medium- to heavy-duty trucks a year and generate an estimated 4.48 billion yuan in annual sales and 224 million yuan after-tax profit.

The company said the project would take six years to complete from the time of its launch, although it did not give a time for the launch.

Jianghuai, originally a manufacturer of multi-purpose vehicles and trucks, recently obtained government approval to make passenger cars, a major growth driver for auto makers in the world’s second-largest auto market.

Sales of Jianghuai auto came to 10.89 billion yuan in the first nine months of this year, up 34 percent from a year earlier, while net profit was down 15 percent at 299.78 million yuan. ($1=7.385 Yuan) (Reporting by Fang Yan; Editing by Edmund Klamann)