(Yicai Global) Jan. 30 -- A unit of Zhongshan Broad-Ocean Motor Co. will set up a joint venture with a subsidiary of Chinese automaker Dongfeng Motor Corp. to develop and produce motor drive products for new-energy vehicles.
Electric drive system and motor controller maker Shanghai Edrive Co. has signed a contract with Dongfeng Industrial Co. to establish a JV, with the former holding a 60 percent stake and the latter taking 40 percent, the Zhongshan-based firm said in a statement yesterday.
The two companies plan to invest CNY1 billion (USD157 million) in the project in two phases. Their manufacturing facilities will have the capacity to produce 50,000 motor drive systems for commercial vehicles including motors, controllers, speed reducers and gearboxes; 100,000 such systems for passenger cars; 100,000 core electrical systems; and 8,000 hydrogen fuel cell systems annually, the statement said.
Dongfeng Industrial will help the JV pursue the electric vehicle motor drive system market, Broad-Ocean Motor said, adding that the two groups will build a mutually beneficial and sustainable partnership.