Shandong plans auto behemoth

Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglomerate in Shandong province with sales projected to exceed 100 billion yuan by 2012, the latest industry consolidation move in China's fragmented auto sector.

Weichai Holdings Group, the biggest shareholder of the country's major high-speed heavy-duty diesel engine maker Weichai Power, and Shandong Construction Machinery Group Co, parent of one of the nation's leading earthmover makers, and Shandong Auto Industrial Group, will form a venture called Shandong Heavy Industry Group Co, according to separate exchange filings by their listed units.

The three companies, all based in the eastern province of Shandong, did not elaborate on the details, such as the financial terms, the timetable and the future structure, of the planned merger in their exchange statements.