Weichai Power Co Ltd, one of China's largest diesel engine manufacturer, yesterday announced it has independently invented and produced the country's first 10-litre, and 12-litre diesel engine to meet European III emission standards.

Production of the engine, which is on a par with the quality of foreign products, signals a new era for the Chinese diesel engine manufacturing industry as it strives to catch up with its international rivals.

The engine can be widely used in heavy-duty vehicles, passenger buses, construction machines, vessels and power generators.

Weichai is expected to market the product in the first half of this year. The full-year production is to reach 50,000 units, according to company Chairman Tan Yuguang.

Tan, who is attending the ongoing third session of the 10th National People's Congress, said the company invented the new product three years in advance of Chinese vehicles being required to adopt the Euro III standard in 2008. This leaves enough time for domestic vehicle producers to deal with this challenge.

The Euro III standard calls for much stricter emission controls than the existing standards.

Ni Hongjie, director of the China Internal Combustion Engine Association, said: "The capability to develop and manufacture large-power engines is the core technology of the engine manufacturing industry. It represents the strength and competitiveness of a country's machine manufacturing industry.

"The technological upgrading from Euro II to Euro III is a revolution in the industry. It will help improve technological innovation and efficiency and upgrade the entire industry," said Ni.

Weichai, which mainly produced engines for heavy-duty vehicles, was on the brink of bankruptcy in the mid-1990s when China's heavy-duty vehicle market was experiencing a slump.
but the company quickly recovered after adjusting its business strategy, reinforcing technology innovation, and reforming its corporate management.

The company has now become one of China's major producers of diesel engines. Its revenue exceeded 10 billion yuan (US$1.2 billion) last year, maintaining a performance that has annually doubled its revenue over the past four years.

The company said it plans to continue to double its revenue to 20 billion yuan (US$2.4 billion) this year.