The city of Xiaoyi, Shanxi province, signed an agreement with Shanxi Huaxia Power Co Ltd and Shanghai Sunwin Bus Co on Sept 16 to create a bus manufacturing base. The project, worth 5 billion yuan ($816.7 million), will reach an annual production capacity of 5,000 buses and annual output value of 7 billion yuan within five years.

The person in charge said that the project will help Xiaoyi develop into a central city and emerging industry base in Shanxi. Xiaoyi and the two companies signed the agreement to establish a joint development relationship and strategic sales partnership. A manufacturing base will be built in Xiaoyi High-Tech Industry Park and produce new-energy buses and core components. The city will establish the first electric bus route and supporting facilities. A production and R&D project is expected to create an industrial chain for new-energy buses and boost the high-tech industry.

New-energy buses have become popular because of the deteriorating global environment and the exploitation of traditional resources, said Jin Xiaohui, manager of Shanghai Sunwin Bus Co. Equipped with the most advanced technology in China, electric buses are the company’s most recent products. They are the best option for public transportation. He also appreciated the good investment environment in Xiaoyi.

Edited by Michael Thai