(Yicai Global) Jan. 24 -- Volvo Cars has selected Zhejiang Sanhua Auto Parts Co. as a global supplier for cooling system components for its new-energy vehicle development project.

The deal will generate more than CNY600 million (USD94.2 million) worth of orders for the company on the Chinese market, Zhejiang Sanhua Auto Parts' parent company predicted.

Zhejiang Sanhua Intelligent Controls Co. said its wholly-owned subsidiary received a letter from the Swedish carmaker acknowledging the deal, which will help the parent improve its operating income and profits and facilitate its penetration of the NEV market.

Sanhua Auto Parts has branched out into the new-energy car business in recent months. It has become a supplier of automotive thermal management components for second-generation electric vehicle models Chinese automaker Shanghai NIO Automobiles Co. developed for mass production.