From:Gasgoo.com

Shanghai, July 16 (Gasgoo.com) China's Chongqing Zongshen Power Machinery Co., Ltd. and Italy's Piaggio Group signed an "agreed minute" in Italy's Pangtedela city on July 13 to establish a 50-50 joint venture in China for production of Piaggio diesel engines, China Securities Journal reported.

Both sides are intended to produce Piaggio's BTC 1.2 L (Euro-IV standard) and BNA 1.0L (Euro-V standard) diesel engines in the joint venture. At present, they have agreed to set up a working group to carry out the preparatory work for the investment assessment.

The Zongshen-Piaggio joint venture, possessing Piaggio's production technology of diesel engine and Zongshen Power's equipment and tools for producing 10 million diesel engines, will cost a total investment of 15 million euros ($19.3 million).

However, Chongqing Zongshen Power said in a statement that its cooperation with Piaggio Group is now still at the planning stage, and that no investment will be made before the investment assessment, the business plan, and other relevant procedures are implemented.

Zongshen Power, located in China's southwestern Chongqing municipality, is a company involved in development, manufacture and sale of motorcycle engines, general power machineries and accessories.