Deal signed for new energy vehicles

A signing ceremony was held via real-time video in Shaoxing, Zhejiang province, Shanghai and the German city of Schweinfurt on Tuesday, with agreements to resume economic activities amid the novel coronavirus epidemic.

China's electric motor manufacturer Wolong Electric Group signed an agreement with the German vehicle supplier ZF Friedrichshafen AG online to strengthen their partnership in a joint venture on electric vehicle development, which was first announced in November.

The signing was witnessed by Ma Weiguang, Party secretary of Shaoxing, where Wolong Electric is headquartered.

Under the agreement, the new joint venture, named Wolong ZF Automotive Electric Motors Co Ltd, will be dedicated to the development and production of traction motors for electric vehicles, plug-in hybrids and micro-hybrids.

The venture will be headquartered in the Shangyu district of Shaoxing. A plant will be set up in Serbia later this year.

The initial registered capital of the joint venture is 53.85 million euros ($61 million), 74 percent of which is from Wolong Electric, a leading player in electric motors and components in the Chinese market.

The two partners hope the new company will become a world-leading components supplier for automotive applications.

After the signing, preparatory work will begin to facilitate the normalized operation of the new company.

"This joint venture is an example of win-win cooperation," said Chen Jiancheng, chairman of Wolong Electric, adding that the company plans to invest a total of 320 million euros in its development and hire more than 2,000 employees worldwide by 2025.

"The partnership, in line with the development strategies of ZF and Wolong, is conducive to the common interests of both sides," Chen said.

Jorg Grotendorst, head of ZF's E-Mobility Division, hailed Wolong as a reliable partner that complements ZF's strengths. He said the signing of the contract helped elevate their partnership to a new level.

Shao Quanmao, vice-mayor of Shaoxing, pledged that the local government will create a better business environment and do its best to support the development of the new company.

Qin Jirong contributed to the story.