Kawasaki and Kymco join forces

Kawasaki Heavy Industries and Taiwanese brand Kymco have entered into a joint venture for the production and sales of general purpose petrol engines.

Under the contract, which was signed on August 3, the marques will invest $US10m ($A11.7m) to form Changzhou Kawasaki and Kwang Yang (Kymco) Engine (CK & K) in the Changzhou National Hi-Tech district.

The facility will occupy a plant area of 6240 square metres and is expected to commence production in January next year. Anticipated production volume will reach 890,000 units.

The products of CK & K will be distributed around the world under the Kymco (full name Kwang Yang Motor Co) and Kawasaki brands.

The alliance is expected to produce engines for a diverse range of applications, including lawnmowers, generators and water pumps. There are also obvious implications for the diversification and expansion of Kymco’s on-road and off-road motorcycle range.

“This is incredibly exciting news for Kymco both globally and in Australia and New Zealand,” said Kymco Chief Executive, Stuart McLean.

“It is a clear signal of Kymco’s commitment to continually identify new opportunities, develop new products, and ultimately facilitate further growth of this genuine global business.

“Kymco has already significantly grown its business in Australia with the successful introduction of motorcycles and ATVs. We look forward to a raft of new developments from Kymco over the coming year.”