The project started on August 23, 2024, right after the signing ceremony of a strategic cooperation agreement between Kim Long Motor and Yuchai Group - the world's leading engine manufacturer.
The factory is located on an area of 6.5 hectares, with an initial investment capital of 260 million USD, owning a 90% automation line, meeting the diverse production of automobile engines, ships, agricultural machinery and generators.
In the first phase, 2.5 hectares are reserved for the production and assembly of internal combustion engines (diesel) with a capacity of more than 40,000 engines/year. The factory also applies many advanced technologies such as JIS (Just-in-Sequence) to help distribute materials according to the assembly order; the Precision Assembly Robot system is first deployed in Vietnam, integrating sensors, machine vision and automatic control to ensure almost absolute accuracy.
The entire operating line is on the Smart Factory platform with a 90% digitalization (MES - IIoT - Robot Traceability), allowing 100% of the technical data of each engine code to be retrieved. This is the foundation for businesses to aim for deep automation, optimizing quality and productivity.

In phase 2, Kim Long Motor and Yuchai continue to invest in expanding the processing line of core components such as engine body, engine clutch, engine cranks, orange axles, transmission lines, etc., while strengthening the localization of components in the gas distribution system, cooling - lubricating and transmission. The enterprise will also operate an emulsion plant with modern forging and pressing technology, aiming to increase the localization rate of the engine to 80%.

At the event, the first two engines Yuchai K11 and Yuchai Y24 were launched. The new generation K11 engine with a consumption of only 19 - 22 liters/100 km is being equipped for KimLong 99 sleeper buses and seats.
The Y24 engine with a capacity of 2,360 cc, 110 Ps, offers flexible transportation, fuel economy, and is the foundation for the upcoming KIM LONG light truck line.
At the same time, the factory plans to produce new engine lines such as Yuchai A07N, S04, S07 and K12L to serve Kim Long Motor's commercial vehicle assembly activities.
Speaking at the ceremony, Mr. Dao Viet Anh - General Director of Kim Long Motor, emphasized that the synchronous operation of the Yuchai engine factory, the plum factory and the auxiliary factories will create a breakthrough in domestic industrial manufacturing capacity.
This complex not only improves the scientific - technical content and autonomy in production, but is also a key factor for the enterprise to achieve an 80% engine localization rate, making Kim Long Motor Hue Industrial Park a leading automobile manufacturing center in Southeast Asia.
Mr. Dao Viet Anh believes that when all factories come into operation, the industrial park will create tens of thousands of stable jobs, promote socio-economic development and form a modern industrial ecosystem in Thua Thien Hue.