Inheriting from World’s Leading Technology

Introduction of Lovol new factory Tianjin Lovol Engines Co., Ltd.

May, 2011

Content I. General Information II. Profile of the first stage project III. Introduction of the advanced production technology and equipments IV. Our scheme for technology and R&D V. Application and performance VI. Products introduction

I. General information

1. Background

To meet stricter requirements for emission and consumption, develop more new products and increase marketing capacity, satisfy China’s new requirements and standards for vehicle engine’s function, energy consumption and emission, Our company planed and prepared to establish a brand new factory in the year of 2007.

2. Site of factory

Lovol new factory is located in Tianjin Beichen Science and Technology Industrial Park, which is close to the outer-ring road, Jingji and Jingjintang freeway. It is about 20 kilometers far from Tianjin South Railway Station (for goods transportation), 40 kilometers far from Tianjin sea port which is one of the biggest in North of China, 16 kilometers from Tianjin International Airport, and 110 kilometers from Beijing.

I. General information

3. Investment

The total construction of the new factory is scheduled to be finished in three stages with total investment of 400 million US Dollars. The total investment of the first stage which has been finished is 120 million US Dollars.

4. Area

Lovol new factory covers an area of 320,123 ㎡ ， including three complex workshops, R&D center, office building, physical-chemical measuring building, public station, sewage disposal station, dormitory and so on. It will be constructed by three stages with total building area of 148,804 ㎡ . The first stage project covers an area of 46,000 ㎡ .

II. Profile of the first stage project

The construction project of the first stage was begun in 2008 and has been finished by the end of 2010, total building area is 46000 ㎡ including complex workshops and other auxiliary public facilities.

① office area (4000 ② cylinder block line ㎡ ) (11300 ㎡ , 100000 sets by three shifts) ③ assembly line (4600 ㎡ ,100000 sets by two shifts) ④ testing line (3800 ㎡ , 100000 sets by two shifts ) ⑤ painting line (1400 ㎡ , 100000 sets by two shifts ) ⑥ finishing line (600 ㎡ , 100000 sets by two shifts ) ⑦ production material distribution area (3200 ㎡ , 100000 sets by two shifts ) ⑧ finished-products storage (3100 ㎡ )

III. Introduction of the advanced production technology and equipments

Processing techniques and production system of the lines in our new factory were designed and built by taking domestically and globally advanced lines such as Cummins lines as the benchmark.

1

、

Machining workshop

The cylinder block line was totally invested 33million US Dollars. It occupies an area of 11300 ㎡ , it can produce totally 6 different models of cylinder block of B,D series. The annual production capacity is 100,000 units by three shifts with totally 40 equipments. The cylinder block line is composed by special automatic production line and processing center.

Such key parts as cylinder bore , crankshaft bore etc.

are processed by first level equipments that were imported from American and European countries, such as MAG (U.S.A), NAGEL (Germany).

Processing center for Semi-finished machining was imported from MAZAK sections (Japan).

are All the equipped main with processing automatic measuring tools and SPC analysis to track and monitor the processing quality.

Machining workshop pictures

III. Introduction of the advanced production technology and equipments

Annex

：

equipments supplier list

No.

1 2 3 4 5 Equipment Name Finish machining equipment (import) Honing machine Computerized Numerical Control Machine Final washing machine Finish machining equipment (Home made) Equipment supplier MAG,USA NAGEL, Germany MAZAK, Japan Shanghai ABB Engineering co., ltd China Changchun aikesailuo company,China Usage Machining of cylinder hole and crankshaft hole Machining of cylinder wall Turning, milling machining center Cleaning the parts Machining of tappet hole

III. Introduction of the advanced production technology and equipments

2. Assembly workshop

The assembly workshop is invested 120 million RMB in total, occupies an area of 10400 ㎡ , includes four production lines --- assembly, test, painting and finishing, has annual production capacity of 100 thousand units, can produce Lovol B/D and 1000/1100 series in addition to 3, 4 and 6 cylinders diesel engines at the same time,

Assembly line

is approximately 280 meters long, occupies an area of 4600 ㎡ , including 121 working stations totally.

The assembly automatic line and widely adopted semi-automatic equipments, such as camshaft press assembly machine, oil sump surface rubberizing robot, valve pat machine, automatic turning machine for cylinder block, crankshaft measurement, piston measurement and crankshaft moment measurement etc.

clearance projecting turning

Assembly workshop pictures

III. Introduction of the advanced production technology and equipments

Technical characteristics of assembly line

 Excellent flexibility, can assemble 3,4 and 6-cylinder engines at the same time.

 High automation  Strong quality control by processing  totally covered by information system

III. Introduction of the advanced production technology and equipments

 Total area of testing line is 3800 ㎡ , totally 24 sets testing platforms. Such 22 engine parameters as engine speed, torque, power, fuel consumption rate, fuel temperature, oil temperature, intake and exhaust temperature, inter-cooled pressure and so on will be tested by the line.

Technology characteristic of engine testing line:

 AVL smoke meter and high-precision fuel gauge.

 RGV transmission, to achieve automated docking in desk frame, engine and tray.

 Full range coverage of information system.

III. Introduction of the advanced production technology and equipments

Annex : Equipments supplier list

S. NO.

1 2 3 4 5 6 Production line Production line Engine testing line Coating and subsequent assembly line Equipment of assembly line alteration and storage line Equipment of testing line for adjusting plan Equipment of coating and subsequent assembly line for adjusting plan Equipment supplier Dalian Haosen Qidong Liantong Shandong Gangzhijie Dalian Haosen Qidong Liantong Shandong Gangzhijie

IV. Our scheme for technology and R&D

Lovol technical center is the key project for the second-period construction. It has 11 sectors and 1 testing center, with a R&D team about 350 people.

Technical center will build up 60 testing plants, be of complete environmental testing room, noise elimination room, parts testing measure room, engine testing plant, assembly testing plant, even road testing ground and testing process center, to meet National Standard requirements from process to testing.

By the cooperation with domestic and world famous research organizations such as AVL, BOSCH, SWRI (American Southwest Academe), RICARD, Tianjin University and Tianjin Industrial University, Lovol will be capable of R&D plants of numeric design, simulation analysis, combustion emission development, NVH development and reliability & endurance testing, meanwhile the production plants will cover diesel, gasoline and substitute fuel engines.

IV. Application and performance

 Truck  Engineer Truck  Intercity Bus City Bus  Agricultural Equipment  Generator Set  Construction Machinery  Mining Machinery  Marine Auxiliary  Marine Main Engine



Medium

、

heavy duty truck

系 系



Engineer truck

系 系 系



Light duty truck



City/Intercity bus



Agricultural equipment (Tractor)



Agricultural equipment (Harvester)



Generator set

…



Construction machinery (Loader)



Construction machinery (Excavator)



Construction machinery

（

Else

）



Mining machinery

Excellent Performance

 Lovol engines’ teams won the first and second place in the first race of “2008 Chinese Truck Race”  Lovol Engines awarded “The Most Reliable Engine” title in “Le Mans Light Truck Endurance Race ”

 Lovol Phaser 100T engine powered aircraft tractor which made by Qingdao special vehicle factory ,it was designated as dedicate engine by Chinese Military.

 Auman medium duty trucks powered by Lovol 6B210 engine were selected to be military specified products.

 “ New look of Binhai” float with Lovol engine presented at military parade of China 60th anniversary  Generator set powered by Lovol engines serviced for Bird's Nest during 2008 Beijing Olympic Games , to make sure the safety of entry.

Lovol Generator Engines Stably Running 17742 hours in Saudi Arabia.

 Lovol engines withstand -40 ℃ cold climate in Russia. Sales volume was 3000 units in the first marketing year, and has reached 15000 units totally.

 Lovol engines well run under desert climate such as 40 ℃ -50 ℃ high temperature and dry weather condition in Iran.

VI. Introduction of engines for generator set and water pump

2. Introduction of generating engines with in-line pump

No.

1 2 3 No.

1 2 3 Item Continuous Power KW/r/min Standby Power KW/r/min Governing Rate Item Continuous Power KW/r/min Standby Power KW/r/min Governing Rate 1003G 28/1500 30/1800 Parameter for in-line pump engine 1003TG 44/1500 50/1800 1004G 40/1500 44/1800 1004TG 65.7/1500 75.6/1800 1006TG1A 84/1500 97/1800 1006TG2A 92/1500 108/1800 1006TAG 121/1500 134/1800 30.8/1500 33/1800 1003G1A 26/1500 48/1500 55/1800 1003TG1A 38/1500 44/1500 48/1800 52/1500 72.3/1500 83.2/1800 1004TG1A 93/1500 107/1800 Mechanical Governor （ ≤5% ）、 Electronic Governor （ ≤1% ） 1006TG3A 86/1500 102/1500 119/1800 1006TAG1A 108/1500 134/1500 147/1800 GAC Governor （≤1%） 1106C-P6TAG 133/1500 28/1800 28.6/1500 30.8/1800 42/1800 42/1500 46/1800 58/1800 57/1500 100/1800 94.6/1500 64/1800 110/1800 GAC Governor （ ≤1% ） 121/1800 119/1500 133/1800 150/1800 146/1500 175/1800

Remark

：

Model Code“1106C-P6TAG”, letter“C” represent Stage 2 emission, letter“P” represent in-line pump

。

Characteristics and advantages (in-line pump products) :

 Large density of power  Low fuel consumption  Good appearance   High Price/performance ratio Good cold start performance —can be well started at -10 ℃ without pre-heater, -25 ℃ through the flame pre-heat cold start aid, and with -40 ℃ start solution.

 Reliability  Except the fuel system, the structure and parameter is almost same as Perkins 1000 series engines.

3. Introduction of power generation

（

STANADYNE rotary pump

） Parameter for STANADYNE pump engine .

No Item 1003G 28/1500 1003TG 44/1500 1003C 3TAG1A 1003C 3TAG2A 1004G 42/1500 46/1500 40/1500 1004TG 65.7/1500 1004C 4TAG1A 1004C 4TAG2A 1006TG 1A 67.5/1500 74/1500 84/1500 1 Con.Power

kW/r/min 30/1800 50/1800 44/1800 75.6/1800 97/1800 2 3 4 5 Sta.Power

kW/r/min Fuel Cons. g/(kW·h) Governing Rate Emission 30.8/1500 48/1500 46/1500 33/1800 ≤218 Stage I 55/1800 ≤210 Stage I ≤210 Stage II 50/1500 44/1500 72.3/1500 ≤210 Stage II 48/1800 83.2/1800 ≤218 ≤210 Mechanical Governor （ ≤5% ） Stage I Stage I 74/1500 ≤210 Stage II 81/1500 ≤210 93/1500 107/180 0 ≤210 Stage II Stage I 1006TG 2A 92/1500 108/180 0 102/150 0 119/180 0 ≤210 Stage I 1006TAG 121/1500 134/1800 134/1500 147/1800 ≤210 GAC Governor （ ≤1% ） Stage I

Remark: Model Code“1003C-3TAG”, letter“C” represent Stage 2 emission.

Characteristics and advantages (STANADYNE pump products):

         Low fuel consumption Good appearance Large density of power Good cold start performance —The engine can be easily started at -25 ℃ with aid of flame preheating device.

Low noise and vibration level Good reliability and stability High Price/performance ratio Wide maintenance service —STANADYNE’s worldwide service system supports the engines’ service .

Absolutely inherited the advanced technology and classic appearance design of Perkins 1000 series engines for generating sets.

4. Introduction of power generation

（

Common Rail products

）

:

No.

Parameters of common rail engines ( Tier3,1800r/min ） 1004D-E4TAG 1006D-E6TAG 1 2 3 4 5 Model Continuous power kW/1500rpm Standby power kW/1500rpm Continuous power kW/1800rpm Standby power kW/1800rpm Governing rate 68 75 71 78 74 81 82 90 84 92 87 96 97 107 105 115 112 123 113 124 122 134 117 129 Electronic Governor （ ≤1% ） 129 142 119 131 131 144 144 158

Remark: Model Code“1004D-E4TAG”, letter“D” represent Stage IIIA /Tier 3 emission level,Letter“E”represent Electronic Control High Pressure Common Rail route.

Characteristics and advantages (Common Rail products):

       High quality electricity Ultra-low fuel consumption —Adopting world advanced high pressure common rail and four-valve technology route ， the fuel consumption is 5% lower than those engines with in-line fuel pump.

Good cold start performance —The engine can be smoothly started up at -35 ℃ with aid of grid-type electric preheating device. Moreover, it has measurements for start-up at -40 ℃ .

Little vibration and low noise Good stability & Reliability —Adopting world advanced four-valve technology and Bosch electronic control fuel supply system, the engine’s function becomes more stably and reliably.

Wide maintenance service —BOSCH’s worldwide service system supports the engines’ service .

Low emission — The engine’s emission can meet Euro Stage IIIA and EPA Tier 3 legislations of developed countries.

5. Introduction of power generation (Natural Gas Engine)

Engine model Fuel Rated Power Induction System Governing Rate 1500r/min Standby Power 1800r/min 1500r/min 1800r/min Exhaust Temperature (Before/After Turbo) 1004NG 1006NG Pipeline Natural Gas < 3% Naturally Aspirated < 3% 30kW 40kW 35kW 33kW 45kW 42kW 38kW 47kW ≤750 ℃ ≤750 ℃ 1006-G6TAG Turbocharged ≤ 1% 82kW 95kW 90kW 105kW ≤700 ℃

Pipeline Natural Gas Engine for Generator Sets

Remark ： The letter N in the engine model“1004NG”means“fuel type is natural gas” (first stage emission standard). The letter G (first letter) in the engine model “1006-G6TAG”means“fuel type is natural gas ”(second stage emission standard and above).

Characteristics and advantages (Natural Gas Engine ):

 Low requests to the gas pressure, mainly using the pipeline natural gas and the low pressure natural gas ； High environmental adaptability.

 Fuel economy ——In Nature gas-rich area, the use cost is much lower than that of diesel generating set. The improvement of fuel economy is obvious.

 Small vibration, low noise ——Softer combustion, lower vibration noise.

 The engine speed can be switched between 1500rpm and 1800rpm freely by the calibration software.

 The key parts and components are all purchased from world famous suppliers, such as, the electronic throttle controller and mixer of Woodward company (USA brand) , ignition plug of NGK company (Japan brand), electronic ignition system of Jiangsu Huidong company (Delphi technology).

6. Introduction of power generation

（

Marine Auxiliary Diesel Engine

） In order to enlarge the product range, we exploit Marine Auxiliary Diesel Engine with mechanical pump + electronically controlled technology, the power range is from 40kW to 110kW. Our marine engines meet China Classification society CCS certificate, and has batch quantity for sales 。 Model Induction Rated power （ 1500r/min ） Governor & governing rate 1004GM Natural 40kW 1004TGM Turbocharged 1006TGM Turbocharged 60kW 90kW Electronic governor≤1% 1006TWGM Turbocharged and inter-cooled 110kW

Remark

：

Model“1004GM”,Letter“M” represent “Marine”.

Characteristics and advantages

（

Marine Auxiliary Diesel Engine

）

:

     seawater as the cooling medium of heat exchange system. Fan and radiator are replaced by seawater pump and heat exchanger, and adapt marine environment.

Double fuel pipe structure for the fuel route system, while add fuel route alarm device, to assure if rust, leak or broken happen in and out of high pressure fuel route, fuel won’t spurt and the device will alarm timely.

High protection and safety. External rotary and high temperature parts are shielded.

Double-line design for all electric component.

External parts have rust prevention for working on the sea against corrosive and wet air , and add shield to prevent electric component against fog corrosion.

7. Introduction of water pump

No.

1 2 3 Item Continuous power kW/r/min Fuel consumption g/(kW·h) Governor & governing rate Performance parameter of water pump engine 1003-3TZ 45/1800 1004-4Z 40/1500 44/1800 1004-4TZ 65.7/1500 75.6/1800 1006-6TZ 92/1500 108/1800 50/2200 ≤218 75/2200 ≤210 92/2200 ≤210 Mechanical governor≤10% 1006-6TAZ 121/1500 134/1800 135/2200 ≤210

Remark: Model Code“1003-3TZ”,letter“Z”represent“Other model”, here refer in particular to “Engines for water pump s”.

Characteristics and advantages (Water pump Engine ):

 Components of engines have high performance.

 According to the demands of customer, we can offer various configuration.

 To meet controlling demand, we can provide engines with control box, and offer clutch with belt wheel as well , drive many kinds of devices.

 Low governing rate and stable flow rate.

8. World famous supplier Turbocharger Common rail technology and injection BYC fuel pump/ Hengyang fuel pump/ Piston ring Tappet Rotary fuel pump Filter Liner/ piston/ cylinder head gasket Fuel filter on common rail engines Solenoid Motor Valve joint Turbocharger on EU II Generator engine