On March 8, Huada Automotive Technology Co., Ltd. (hereinafter referred to as "Huada Technology) issued an announcement that Jiangsu Hengyi Auto parts Manufacturing Co., Ltd. (hereinafter referred to as" Jiangsu Hengyi "), a holding subsidiary of the company, intends to establish a joint venture with Wujiang Xinshen Aluminum Technology Development Co., Ltd. (hereinafter referred to as" Xinshen Aluminum "). Among them, Jiangsu Hengyi holds 70% of the shares and Xinshen Aluminum holds 30% of the shares. The project of high performance magnesium alloy application and local production of new energy vehicle battery tray is jointly invested in Zhongguancun Industrial Park in Liyang City, Jiangsu Province. the total investment of the project is no more than 363 million yuan, of which Jiangsu Hengyi plans to invest 254 million yuan. Xinshen Aluminum Industry plans to invest 109 million yuan.
According to the company's strategic development plan for 2021, the new project aims to further promote the production capacity layout of the company and its holding subsidiaries, cultivate a new material industry chain, upgrade new processes, meet customer needs, promote business development, and consolidate its market position. In terms of short-term impact, the company's investment can provide more convenient services for the SAIC era, the company's largest customer in Liyang, while achieving the goal of minimizing costs, reducing response time and reducing logistics costs. In terms of long-term impact, this investment in the construction of high-performance magnesium alloy applications and localized production bases for new energy vehicle battery trays is in line with the company's strategic development plan, and will further improve the company's capacity layout. to meet the company's future development of "alternative products" and market expansion needs.
The announcement shows that Jiangsu Hengyi, a subsidiary of Huada Technology, has laid out in advance in terms of new energy automobile parts, has been deeply cultivated in this field for many years, and has accumulated more mature technology and customer resources. the main products are battery trays, motor cases and motor shafts, and so on. The main customers are SAIC, Yutong, Great Wall, Xiaopeng, Weilai, ideal, Jianghuai, Jinlong and other passenger car and bus head enterprises.
