Dongfeng Motor Co Ltd plans to set up a joint venture with German-based Schmitz Cargobull AG to produce semi-trailers with an investment of 600 million yuan ($96.12 million). The two sides signed a strategic contract on Friday in Wuhan.

The new joint venture, Dongfeng Smith Special Vehicles Co Ltd, will be committed to research and development, production and sales of semi-trailers. It will be located in Wuhan Economic and Technology Development Zone. The two companies share 50 percent of the equity each.

The joint venture is expected to be put into production in the first half of 2014 and reach a total production scale of 40,000 vehicles in five years.

Founded in 1892, Schmitz Cargobull AG is a professional manufacturer of trailers and vehicle bodies. It has seven manufacturing bases in Europe, with annual production capacity of 110,000 vehicles.

Via: ChinaDaily.