19 October 1998, Tokyo. Mitsubishi Motors Corporation, together with Harbin Dong-An Engine Manufacturing Company and the Harbin Aircraft Manufacturing Corporation (both affiliates of Aviation Industries of China), MCIC (Malaysia China Investment Corporation) Holdings Sdn. Bhd. and Mitsubishi Corporation established Harbin Dong-An Automotive Engine Manufacturing Co., Ltd. joint-venture in Harbin, Heilongjiang Province on 4 September 1998 for the purpose of developing, producing and marketing of automotive engines and transmissions. The new factory is due to start production in 2000. Ceremonies are to be held in the factory grounds to mark the establishment of the joint-venture and to commission the new factory in Harbin, starting at 10:30 local time on 19 October.

Mitsubishi Motors had been engaged in discussions about the promotion of an automotive engine joint-venture enterprise with the Aviation Industries of China (of which the Harbin Dong-An Engine Manufacturing Company and the Harbin Aircraft Manufacturing Corporation are affiliates), MCIC Holdings Sdn. Bhd., and Mitsubishi Corporation for some time. These discussions produced general agreement among the parties in August 1996 and on the 26th of that month a joint venture agreement was signed in Beijing in the presence of Chinese premiere Li Peng, vice premier Zhu Rong Ji and Malaysian prime minister Dr Mahathir bin Mohamad. After the joint-venture agreement was revised to tailor the investment amount to the market situation, an application for approval of the establishment of the joint venture was submitted to the Chinese authorities. The application was approved by the Chinese government on 30 July 1998, and the joint venture was established on 4 September 1998.

After completion of site establishment work, erection of factory buildings, installation of machinery and equipment, and test production runs, the factory is due to start manufacturing 1300 cc and 1500 cc gasoline automobile engines and matching transmissions in 2000. Plans call for a production volume of 15,000 units in the initial year, this to rise to around 75,000 units within 10 years. Local content at the start of production will be around 50%, and plans are to increase this to around 85% in stages.

Joint Venture Profile (For information purposes only)