West Shanghai plans to acquire Shanghai Xingding, which operates Nio's delivery center in Shanghai.
(Image credit: Nio)
Shanghai-listed West Shanghai Automotive Service plans to further increase its business with Nio by acquiring a supplier that provides delivery services to the electric vehicle (EV) maker.
In an announcement Saturday, West Shanghai said it plans to use up to 24 million yuan ($3.76 million) of its own funds to bid for 100 percent of Shanghai Xingding Supply Chain.
Shanghai Xingding's main business is the storage and delivery of automobiles and provides delivery services for Nio, which operates the latter's delivery center in Shanghai.
West Shanghai said the acquisition is highly aligned with its existing main business and will further increase the company's business volume and enhance its capabilities and reputation in the automotive services sector.
The Nio Shanghai delivery center operated by Shanghai Xingding is located in Baoshan District, Shanghai and covers 13,600 square meters.
It has 296 parking spaces and a delivery area of 1,390 square meters, making it a well-equipped Nio delivery center with a comprehensive service system.
It is worth noting that this is not the first time that West Shanghai has expanded its business layout around Nio.
On October 13, West Shanghai announced that it plans to participate in the bidding of land in Hefei Economic and Technological Development Zone to build an intelligent manufacturing park and invest RMB 100 million to establish a wholly-owned subsidiary as the main body of the project.
The project will mainly provide services for Nio's auto manufacturing base in NeoPark, helping it to complete the intelligent assembly and sorting supply and storage of some auto parts and assembly products, and the service capacity is expected to match the annual production capacity of 600,000 new energy vehicles after reaching production.
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