Xinde expects diesel engines profits to grow to $14 million

by Karen Di   2011-07-15

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WEIFANG, Shandong – China’s diesel engine and components maker Xinde Technology Co. has reported that its 6CT/6LT diesel engine series has achieved sales of more than 1,000 units since its launch in May 2010, according to media sources.

Liu Dianjun, president and chief executive officer, said, “due to the high performance-cost ratio and rapid adoption of this new line, we have been unable to keep up as yet with the strong demand. In particular, our 6CT/6CLT diesel engine series has compared quite favourably with other products in the market, namely the Dongfeng Cummins engines which sell for roughly 20 percent more than our new engines.”

In May 2010, Xinde raised $3.1 million to construct a 3,000 square meters plant dedicated to the production of the 6CT/6LT engines. The plant is now expected to be completed in December 2011, raising output capacity to 50,000 engines a year.

“If we are able to sell all the units we can produce, we anticipate sales of our 6CT/6LT engine line to grow approximately at $62 million. We also expect operating profits of roughly $14 million, based on the approximately 25 percent operating profits currently being generated by these engines,” Liu said.

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