Chengdu-made automobile engine block will account for 20% of the national
The reporter learned that the second joint venture of Hong Kong Dechang Electric Co., Ltd. has officially started operations in Dayi County, marking a significant milestone for the region. This is the first joint venture of the company in western China, named Chengdu Rongxin Group Tonglin Casting Co., Ltd. The facility has an annual production capacity of 1.2 million automobile engine blocks, which is expected to boost the city's share of the domestic auto parts market to over 20%.
Tonglin Casting Co., Ltd. specializes in four types of automobile engine block casting products, with more than 30 different varieties available. Last year, the company sold 600,000 units, capturing 12% of the national market. In early 2023, the company partnered with Hong Kong Dechang Electric Co., Ltd. to establish a new joint venture with an investment of $12 million, aiming to expand the second phase of the casting project.
Once the second phase becomes fully operational, the plant will produce 1.2 million engine blocks annually, making it one of the largest manufacturers in China for this type of automotive component. The company has already formed strong supply chain partnerships with global giants such as General Motors, Honeywell, and Cummins. These international brands are expected to use engine blocks produced in Chengdu, further enhancing the company’s reputation and market reach.
This development not only strengthens the local economy but also highlights the growing role of western China in the global automotive industry. With increased production capacity and strategic international collaborations, the joint venture is well-positioned to play a key role in meeting the rising demand for high-quality automotive components both domestically and internationally.
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