Gold Dragon Suzhou and Suzhou Chuangyuan Sci-Tech Form JointVenture to Build New Energy Vehicle Parts Production and R&D Base
Suzhou, China, September 3, 2024 – Gold Dragon Suzhou, a subsidiary of Xiamen Golden Dragon Bus Co., Ltd., and Suzhou Chuangyuan Sci-Tech Development Co., Ltd., a wholly-owned subsidiary of Suzhou Chuangyuan Investment Development (Group) Co., Ltd., have announced their intention to establish a joint venture company. The new company, tentatively named Suzhou Chuangyuan Gold Dragon Industrial Development Co., Ltd., will focus on building a production and research and development base for new energy vehicleparts.
According to the announcement, the joint venture will have a registered capital of 462.5 million yuan. Suzhou Chuangyuan Sci-Tech will contribute 277.5 million yuan in cash, representinga 60% stake, while Gold Dragon Suzhou will contribute land use rights and affiliated buildings valued at 185 million yuan, accounting for 40% of the capital. The valuation results have been filed with the State-owned Assets Supervision and Administration Commission of Fujian Provincial People’s Government.
The establishment of this joint venture marks a significant step for both companies in expanding their presence in the rapidly growing new energy vehicle market. Gold Dragon Suzhou, a leading manufacturer of buses and commercial vehicles, will leverage its expertise in vehicle manufacturing and supply chain management. Suzhou Chuangyuan Sci-Tech, known forits investments in technology and innovation, will bring its financial resources and technological capabilities to the table.
The new production and R&D base will be strategically located in Suzhou, a city known for its strong automotive industry and supportive government policies. The facility will focus on developing and manufacturing key components for new energy vehicles,including batteries, electric motors, and power electronics.
This partnership is expected to bring several benefits to both companies. Gold Dragon Suzhou will gain access to additional capital and technological resources, enabling it to accelerate its development of new energy vehicle products. Suzhou Chuangyuan Sci-Tech will gain a foothold in the lucrativenew energy vehicle parts market, expanding its investment portfolio and contributing to the development of a sustainable transportation ecosystem.
The joint venture is expected to create new jobs and contribute to the economic development of Suzhou. It will also play a crucial role in promoting the adoption of new energy vehicles in China, aligning with the government’s ambitious goals for a cleaner and more sustainable transportation sector.
The establishment of the joint venture is subject to regulatory approvals and is expected to be finalized in the coming months. Both companies are confident that the partnership will be a success, driving innovation and growth in the new energy vehicle industry.
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