(Yicai) Dec. 21 -- Dechang Electrical Machinery Made, a Chinese home appliance motor maker expanding into the automobile electric machine industry, has become the supplier of electric power steering machines of US motion control technology provider Nexteer Automotive.

A unit of Dechang will supply EPS machines to Nexteer for 10 years, with the products' mass production and delivery beginning in May 2025, the Ningbo-based parent firm announced late yesterday. The deal is expected to bring Dechang sales income of USD143 million.

The deal shows Nexteer's recognition of Dechang's ability in product design and development, quality management and control, and production guarantee and is conducive to enhancing the company's competitiveness in the auto EPS machine and brake motor markets, Dechang noted.

Dechang's revenue from the auto EPS machine business skyrocketed 1,900 percent to CNY74.2 million (USD10.4 million) last year from the previous one, accounting for about 3.8 percent of the total, the company's 2022 annual report showed. Dechang's annual production capacity of EPS machines reached three million sets as of Dec. 31, last year.

German passenger car and commercial vehicle system supplier ZF Friedrichshafen, Japanese engineering and manufacturing automotive system provider Jtekt, and the Chinese units of Nexteer are among Dechang's main overseas clients.

Dechang's shares [SHA: 605555] were trading up 0.4 percent at CNY22.37 (USD3.13) as of lunch break in Shanghai today.

Editor: Futura Costaglione