(Yicai Global) Sept. 29 -- Beijing WKW Automotive Parts Co. [SHE:002662] said yesterday that it signed an investment agreement and will cooperate with a wholly-owned subsidiary of Hybrid Kinetic Group Ltd. [HK:1188] as well as the local government to establish a manufacturing base for clean energy vehicles in Ningbo’s Fenghua district with an annual output of 300,000 units.
Their plan calls for USD2.57 billion (CNY17 billion) in investments. The company designed the project to promote the manufacturing of new energy vehicles.
Under the agreement, Hybrid Kinetic’s subsidiary will set up a dedicated industry fund that will establish a joint venture with Beijing WKW Automotive Parts in Fenghua. The JV, Ningbo Hybrid Kinetic WKW Holdings Co., will have a registered capital of CNY4 billion. The companies will each subscribe to 50 percent of its equity.
The project is set to cover an area of 1,800 mu (0.46 square mile). Project capital, the dedicated industry fund, government subsidies and project loans will back the scheme.