(Yicai Global) May 15 -- Wuhan Huazhong Numerical Control Co. will cooperate with an aluminum alloy producer and an investment group in South China’s Guangxi Zhuang Autonomous Region to research and develop lightweight electric vehicles.
Huazhong Numerical, a computerized numerical control, or CNC, system supplier, will cooperate with Nanning Industrial Investment Group Co. and Guangxi Alnan Aluminum Inc. to invest in a joint venture for the design and development of lightweight electric vehicles, it said in a statement yesterday.
The joint venture will have a registered capital of CNY45.5 million (USD 7.2 million). Huazhong Numerical will invest CNY25.5 million in intellectual property, accounting for almost 56 percent of the shares. Nanning Industrial Investment will provide CNY15 million in cash, holding nearly 33 percent of the shares. Guangxi Alnan Aluminum will invest CNY5 million to own a 11 percent stake in the company.
There is a growing demand for new energy vehicles in China, the world’s biggest auto market. Many companies seek partnership with suitable firms in a bid to seize a market share. Some 605,500 plug-in passenger cars were sold in the country last year. China accounted for almost half of the global market and grew 30 times faster than the world average, data from industry researcher EV Volumes shows.
The joint venture will integrate local aluminum alloy industry resources and new energy vehicle enterprises in Nanning, capital of the Guangxi region, to create an electric vehicle industrial chain in the city and boost the transformation and the upgrading of the local aluminum alloy industry to help build such a chain characterized by lightweight vehicles, the statement added.
Nanning Industrial Investment is a state-owned assets operation platform of the Nanning municipal government. Guangxi Alnan Aluminum is a local medium- to high-end aluminum alloy manufacturer, it said.
Editor: Mevlut Katik