Beijing Automobile Works Co Ltd (Beijing Auto) has inked a series of cooperation agreement with the Qinghai provincial economic commission on setting up a special-purpose vehicle production base in Northwest China's Qinghai province, the official Xinhua News reported.

Pursuant to the cooperation agreement, a joint venture (JV) will be established between Beiqi Foton Motor Co Ltd<600166> and a local company to manufacture special-purpose trucks, such as tractor truck, conventional flat truck, dump truck, garbage truck and truck used in oil fields, etc. by using the heavy truck chassis of Foton Auman.

With an investment of RMB 250 million, the manufacturing plant is expected to be set up in Qinghai province in the near future, with the annual capacity of 5,000 special-purpose vehicles and sales revenue of RMB 1 billion, the company said.

This project is considered as part of Beiqi Foton's plan to expand to West China as well as the middle and west Asian countries.