China's new energy vehicle market is so popular that the rare entry of Chinese multinational heavy machinery manufacturing giant XCMG Group is a case in point.
XCMG Group said on January 3 that on December 30, 2020, it signed a contract with Tsinghan Holding Group for a new energy industry base project with a total investment of about RMB 5.5 billion yuan ($850 million).
The project will be mainly used for the research and development, production, sales and services of new energy vehicles, power batteries (cells and packs), motor-electric control systems and other components.
XCMG Group said the project is expected to achieve annual sales revenue of RMB 10 billion and annual tax revenue of about RMB 200 million.
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The project is planned to be located in the fifth industrial park of Xuzhou High-tech Zone, covering a total area of about 1,000 mu. Among them, the first phase of the project invests 2.5 billion yuan and covers an area of about 500 mu.
In recent years, domestic construction machinery giants have promoted electric construction machinery one after another, including Sany Heavy Industry, Zoomlion Heavy Industry Science and Technology, XCMG Group and others have launched their electric construction machinery products. But construction machinery companies directly into the new energy vehicle production and power battery field is relatively rare.
XCMG Group was established in 1989, the products cover lifting machinery, mining machinery, excavation machinery, road machinery, heavy trucks and other types of machinery products.
Official information shows that XCMG Group is currently the largest and most complete product range and series of large enterprise group in China's construction machinery industry.
It is the only state-owned heavy truck manufacturer in Jiangsu Province and the only one holding both traditional fuel and new energy qualifications in the province, with an industrial layout covering two major industrial fields: new energy, equipment and intelligent manufacturing.
Tsinghan Holding Group, founded in 2003 and headquartered in Wenzhou City, Zhejiang Province, mainly produces stainless steel ingots, bars, plates, wires and seamless pipes.
In addition to steel, Tsinghan Holding Group's products also include raw materials, intermediate products and new energy batteries for the new energy field, mainly used in energy storage systems and electric vehicles.
China's new energy vehicle sales expected to grow 40% to 1.8 million units next year
