(Yicai Global) April 11 -- Global auto giant Stellantis plans to take a 32 percent stake in the engine remanufacturing subsidiary of Miracle Automation Engineering, with the aim of expanding the Chinese firm’s business into auto parts recycling and refabrication.

Stellantis unit Automobiles Peugeot will make the investment by raising the registered capital of Miracle Oruide Guangzhou Auto Parts Remanufacture, Wuxi-based Miracle Automation announced yesterday, citing the agreement it recently signed with Stellantis.

Miracle Automation, which has been expanding into power battery recycling and owns 41 percent of Miracle Oruide, did not disclose any further details of the deal.

Miracle Oruide can remanufacture 50,000 car engines a year and has factories in Guangzhou, Chongqing, and Yangzhou, Miracle Automation said. The unit plans to widen its business scope to remanufacture gearboxes, new energy batteries, and motors, the company added.

The investment provides Miracle Automation and Stellantis with a new opportunity to cooperate on the parts recycling and refabrication business, it said. Under the deal, they plan to continue to seek joint opportunities in waste and power battery recycling, auto dismantling, and power battery remanufacturing.

Miracle Automation agreed a deal last December to recycle the decommissioned lithium-ion batteries of Stellantis' Chinese unit.

Shares of Miracle Automation [SHE: 002009] closed 1.1 percent higher at CNY14.29 (USD2.08) apiece today. The wider Shenzhen stock market ended little changed.

Editor: Martin Kadiev