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King Long Bus based in Xiamen, Fujian Province, yesterday became China's first firm to be granted VCA certification by the British authorities - the key to entering the European market.
"This honor marks a milestone in the history of China's bus manufacturing industry," said Mick Deakin, a type approval engineer for the Vehicle Certification Agency (VCA), Midlands Center UK.
As a VCA engineer, Deakin travels the world approving all manner of vehicles from motorcycles to large military trucks.
"With VCA certification, King Long can now compete on level terms with buses and coaches manufactured within the EU," Deakin said.
Xu Xiangdong, vice-president of King Long United Automotive Industry Co Ltd, said the company is enlarging its production capacity through heavy investment.
"The VCA certification is a passport for us to go into Europe and realize our global strategy," said Xu.
To see this objective through, the firm will complete its first-phase technical expansion project by the end of 2005, which involves 260 million yuan (US$31.5 million) in investment. Upon completion, King Long will be able to manufacture 6,000 vehicles annually.
Its second phase project will swallow 200 million yuan (US$24.2 million) in investment and an area of 150,000 to 200,000 square meters.
The goal of this phase is to add 7,000 vehicles to the company's capacity by the end of next year, Xu said.
"Our buses can compete on level terms with Volvo in Europe on price," he said.
A Volvo bus in Europe costs about 3 million yuan (US$363,196), while a King Long bus is priced just above 1 million yuan (US$121,065), he said.
"For many years, products from Asia have faced the stigma of being considered second rate. But from what I have seen of China, this view is unjustified," said Deakin.
BIE Malta Ltd, a partner of King Long, will gear its entire sales network to promote King Long's bus line in Europe, said Christopher Cassar, managing director of BIE Malta Ltd.
Deakin said King Long will soon sign an agreement with BIE Malta Ltd to sell buses in Britain with the following target being Italy.
(China Daily March 16, 2005)
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