Ningde era: investment in European production and Research Base will be expanded

SMM6, July 26, 2018, the 26th meeting of the first board of directors of the company considered and adopted the "bill on the construction of a European production and research base", agreeing to build an overseas production and research and development base in Europe and carry out power battery production and research and development business, with an estimated investment of 240 million euros. In addition, Ningde era will also study and determine the follow-up construction plan of the project according to the construction situation of the previous project and the market situation in the future.

At present, due to the development of overseas business and changes in market demand, Ningde era, in order to deepen the company's global strategic industrial layout and enhance the production capacity and R & D capacity of the European production and research base project, the fourth meeting of the second session of the board of directors held on June 25, 2019, examined and adopted the "bill on increasing investment in European production and research base projects," agreeing to increase the company's investment in European production and research base projects. After the increase in investment, the total investment in the project will not exceed 1.8 billion euros.

According to the data, the project address of this R & D base is located in Elfert, Turingen, Germany. It is called German Times New Energy Technology (Thuringen) Co., Ltd., and its business scope includes the research and development, production and sales of lithium-ion batteries and related products. The total investment does not exceed 1.8 billion euros (including the original estimated investment of 240 million euros, and the total investment of the final project is subject to the actual investment). A lithium-ion power battery production base and a lithium battery R & D and testing center will be built. The total amount of investment mentioned above includes land purchase and plant purchase and construction, equipment purchase and installation, other costs of engineering construction, reserve expenses and working capital required for operation, etc.

Ningde Times said that the investment in the European production and R & D base project will further enhance its production capacity and R & D capacity in the European production and research base. After the completion of the project, it will help to optimize the global production layout of the company. At the same time, Ningde era also disclosed the risks of the investment, including: project approval risk, China and Germany in the legal system, policy system, business environment, cultural characteristics and other aspects of great differences, there are certain operational and management risks. There is a risk that the construction of the project will not be completed on schedule or that the construction cost will be higher than the expected cost. The market situation of lithium-ion power battery is affected by the market demand of European new energy electric vehicle. If the local market situation changes greatly, it will have an impact on the economic benefits of the project. When the project is settled in foreign currency, there is a risk caused by exchange rate fluctuations.

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