Intensive processing split China Zhongwang to build a subsidiary to focus on the new energy vehicle market

On March 12, Liaoning Zhongwang Aluminum Alloy intensive processing Co., Ltd. (hereinafter referred to as "Zhongwang intensive processing" or "the company") issued a division notice, saying that its shareholders decided to carry out derivative division of the company. after the division, the newly established company is Liaoning Zhongwang Aluminum Alloy Technology Co., Ltd. (hereinafter referred to as "Zhongwang Aluminum Alloy Technology").

According to public information, Zhongwang intensive processing is a wholly owned subsidiary of China Zhongwang Holdings Co., Ltd. (hereinafter referred to as "China Zhongwang"), which was established in 2014. the company's main business scope is aluminum and aluminum alloy products R & D, manufacturing, processing and sales; car body, auto parts and accessories manufacturing, sales and so on.

Industry insiders said that unlike most companies through spin-off or divestiture of assets, China Zhongwang spun off the deep processing business, one of the three core businesses, mainly to further tap the new energy vehicle market.

Prior to this, China Zhongwang has been deeply engaged in the field of new energy vehicles for many years, not only in cooperation with international well-known automobile brands such as Mercedes-Benz and BMW, as a first-tier supplier to supply high value-added deep-processed products for many of the world's top mainframe factories, but also with Volvo, Chery, BYD and FAW and other leading domestic automakers to develop lightweight projects for new energy vehicles such as passenger cars, commercial vehicles and special vehicles.

The direction of Zhongwang's layout of new energy vehicles in China has been extending to a more in-depth terminal application market, and the separation may help it to develop into a supply chain company of high value-added new energy vehicles.

1. Intensive processing and separation of main businesses are more prominent and the operation mechanism is more flexible.

According to people close to China Zhongwang, the split Zhongwang intensive processing Company is actually the main body of the deep processing business that Zhongwang often calls "deep processing plant", that is, one of the three core businesses of China Zhongwang.

Combing the relevant data, Zhongwang intensive processing mainly produces lightweight products in the field of transportation, such as high-speed rail, subway and other rail transit car bodies, aluminum alloy welding parts of rail vehicles, automotive aluminum alloy parts, ships and large components used in the aerospace field.

According to people familiar with the matter, after the completion of the separation, Zhongwang aluminum alloy technology will undertake rail car bodies and rail vehicle parts and other business, the survival of Zhongwang intensive processing will be more focused on the field of new energy vehicles.

The aforementioned industry insiders believe that there are generally several reasons for the separation of companies, one is to divest assets that are not closely related to the main business, so as to make the main business more prominent and enhance the company's core competitiveness; the other is through the separation of the business, highlight the core main business at the same time, further achieve business expansion.

The separation of Zhongwang intensive processing obviously belongs to the latter. Whether it is rail traffic business, or new energy vehicle business, almost each accounts for half of Zhongwang's intensive processing. According to relevant sources, after the separation, on the one hand, the two companies will focus on rail traffic and new energy vehicles, respectively, and carry out independent corporate operation, and the company's management and operating mechanism will be more flexible; on the other hand, they can rely on Zhongwang Group's talent, equipment and resources coordination advantages to accelerate development.

2. The performance of deep processing plate is stable and vertical extension focuses on more high-end.

China Zhongwang's deep processing business, together with industrial aluminum extrusion and aluminum Calendering business, constitute the company's three core businesses. In 2013, the newly built deep processing center of Zhongwang Group was officially put into production in June of the same year. Zhongwang intensive processing Company was established in 2014. after years of development and accumulation, the company not only introduced the world-class first-class equipment such as Austrian IGM double-gun automatic welding machine, German FOOK five-axis gantry machining center, American Yili bending machine, Sweden ESAB friction stir welding machine, but also established an excellent technical R & D team. At present, the company has more than 3000 employees.

In recent years, China Zhongwang has further expanded its deep processing business to the higher end of the industrial chain through continuous capital investment. At present, China Zhongwang has developed a series of high value-added deep processing products with huge market potential, such as all-aluminum rail car body, electric bus body frame, new energy vehicle body-in-white and so on.

3. Join hands with automobile companies to cooperate deeply and constantly consolidate their market position

The high-end application of Zhongwang deep processing business in China is quite eye-catching, especially in the field of rail transit and new energy vehicles. According to the financial report, in the first half of 2020 alone, China Zhongwang provided car body aluminum extruded materials for domestic urban rail transit projects such as Shanghai, Guangzhou, Shenzhen, Wuhan, Hangzhou, Fuzhou, Nanning and Ningbo. At the same time, it also provides aluminum extrusion materials for the car body of China standardized EMU Fuxing at speeds of 350 km / h and 250 km / h. In addition, China Zhongwang is currently the main supplier of aluminum extruded materials for the car body of China's high-speed rail "Fuxing".

In the field of new energy vehicles, China Zhongwang has made more fruitful achievements. According to incomplete statistics, China Zhongwang has launched technical cooperation with international well-known car brands such as Mercedes-Benz, BMW and Jaguar Land Rover, as well as a number of domestic top car manufacturers such as Geely, Volvo, Chery, BYD, FAW, and so on. Joint development of passenger vehicles, commercial vehicles, special vehicles and other new energy vehicle lightweight projects.

At the same time, China Zhongwang's highly processed products have also entered the cooperation list of mainframe factories at home and abroad, and it is reported that the company has reached cooperation with BMW Group, Jaguar Land Rover and so on. Zhongwang carries out intensive processing on the basis of existing high-end industrial aluminum extruded materials and aluminum sheets, and provides terminal products to customers in the above-mentioned automotive field with high value-added deep processing products.

In cooperation with domestic car companies, China Zhongwang has repeatedly made the first major breakthroughs in China, including working with Chery to create the first domestic brand of new energy vehicle with all-aluminum alloy body, Little Ant eQ1, and working with FAW to develop the first domestic city bus with "all-aluminum body + all-aluminum chassis" and all-aluminum alloy pure electric van logistics vehicles. All confirm Zhongwang's industry leading advantage in the design, production and manufacture of all-aluminum alloy body.

Industry insiders say that whether it is domestic Lulai or Tesla, one of the most important issues in the new energy vehicle industry is weight loss, and lightweight is a difficult problem that major car companies have worked hard to develop and explore in recent years to solve. Lightweight solutions composed of aluminum and aluminum alloy bodies are the only option for the foreseeable future. The huge demand for new energy vehicles gives the aluminum industry a huge olive branch and opportunity, and new stars will emerge in the automotive aluminum industry, such as Apple's supply chain and Huawei's supply chain. the electric vehicle industry will also have a new electric vehicle supply chain after Tesla. China Zhongwang has been deeply engaged in the new energy vehicle market for many years, and has already realized the transformation from a simple aluminum material supplier to a lightweight solution integrated with the whole process of new energy vehicle design, R & D, production, manufacturing and after-sales service. The separation of the company means that Zhongwang intends to create an independent, professional and dedicated main body-Zhongwang intensive processing, focusing on the R & D and manufacture of all-aluminum alloy body and spare parts of new energy vehicles.