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Ikarus to establish bus joint venture in China

Hungarian bus maker Ikarus Rt will establish a joint venture with Datong Hongye Investment Holding to manufacture buses in China, business daily Napi Gazdaság reported.

Datong Hongye, a Chinese investment company, will hold a 51% stake in the company and Ikarus will own the remaining 49%, Napi said, citing Ikarus owner and CEO Gábor Széles. The joint venture will have registered capital of $30 million. New Ikarus buses are expected to be produced early next year in Qingdao, eastern China. The company will make up to 2,000 buses in 2007 with annual production expected to reach 10,000 in coming years, Napi said. Owners of the joint venture may also list the new company's shares on the Nasdaq, Széles told the paper.