On March 28, 2023, Fengyuan Company signed a cooperation agreement with Fuunkun, Ethiopia, to jointly establish a trailer assembly plant in the capital city of Ethiopia, Addis Ababa. The first batch of orders will reach 300 units.

Fuunkun, Ethiopia, is a perennial cooperative client of Fengyuan Company and has always maintained a friendly cooperative relationship.

Due to the impact of the epidemic and changes in the market environment, it is imperative to establish an overseas KD factory. After a month long investigation in Africa, it was finally decided to jointly establish a trailer assembly plant with Fuunkun Company in Addis Ababa, the capital of Serbia.

Advantages of establishing KD factories overseas:

1.Save transportation costs, improve the utilization of space for KD bulk transportation, and save more containers than whole vehicle transportation, which can save shipping costs and correspondingly reduce costs

2. Due to the high import tariffs on whole vehicles in some countries, some customers may request to reduce import tariffs and total costs through bulk transportation.

3. According to the trend of economic development in Africa, the increasing scale and speed of local trailer factories, as well as the gradual rise and growth of the transportation industry, have forced the rise of local KD factories and also driven the employment and development of local labor.