Weichai Power Signs Strategic Restructure Agreements with Ge
HONG KONG, Jan. 15, 2020 /PRNewswire/ -- Weichai Power Co., Ltd. ("Weichai Power" or "the Company", HKEX: 2338, SZSE: 000338) signed strategic cooperation agreements with Germany's ARADEX AG ("ARADEX") and Austria's VDS Holding GmbH ("VDS") in Jinan, Shandong Province. Mr. Ling Wen, Vice Governor of Shandong Province, members of Shandong provincial government and media representatives attended the signing ceremony.
According to the agreements, Weichai Power has successfully completed the acquisition of an 80% stake of ARADEX and planned to acquire a 51% stake of VDS, making Weichai Power the controlling shareholder of both companies. The fast implementation and deep integration of the two strategic restructures will effectively improve China's key technical weaknesses in the electric motor control systems of the new energy powertrain and agricultural equipment CVT powertrain systems, and accelerate the industrialization process of Weichai Power's new business landscape.
Acquiring core technologies of electric motors, Weichai strives for system integration synergies
Since founded in 1989, ARADEX has been committed to the research and development of electric motors, control systems and energy storages for the industrial and transportation industry. The company has become a pioneer in high performance variable frequency and power supply equipment technology. ARADEX offers powerful design, development and system integration capabilities in terms of various CNC servo motors and servo drivers, new energy commercial vehicle motor controllers, electric motors, fuel cell DC/DC converters and other products. Its products have a design life of over 30,000 hours and are widely recognized for their excellent performance, with hundreds of successful applications.
Following the strategic restructure in Canada's Ballard Power and UK's Ceres Power, Weichai Power's strategic restructure in ARADEX is another international strategic attempt in the field of new energy powertrain system. Through the effective integration of resources, Weichai Power has not only mastered core technology in the field of traditional powertrains for heavy-duty commercial vehicles, but also acquired key technology in electronic control system and successfully built the synergetic advantage of an integrated "battery, electric motor and electronic control" system. With the collaborations, parties will work together to accelerate research and development and provide customers with integrated and optimal solutions for new energy powertrain systems.
Mastering key technology of CVT, Weichai accelerates development of agricultural equipment market
VDS is a technology development company specializing in the powertrain systems for vehicles. It has developed a wide range of products such as hydraulic and automatic transmissions which are widely used in tractors, loaders, municipal vehicles, new energy buses, etc. At the same time, the company has strong product design, R&D, and testing capabilities that can provide consulting services on the whole process from design scheme to prototype production.
Through the strategic restructure, Weichai Power and VDS will complement each other's advantages to obtain a win-win accomplishment which could overcome China's weakness on hydraulic transmission technology, control the key and core technology of CVT powertrain system of agricultural equipment, break the grip of foreign monopoly and achieve breakthroughs in manufacturing CVT powertrain systems in China. It is another successfully attempt after Weichai built the hydraulic system of construction machineries. The scale production and commercialization will effectively help China's agricultural equipment transform to the high-end market.
Integrate global technology resources with an open posture, support high-quality and sustainable development with core technology. In recent years, Weichai Power has focused on the "Urgent Company Needs, High-end Technology and breaking the Industry's Bottleneck". The company has successively strategic restructuring numbers of global high-tech enterprises around the world, to comprehensively improve the Group's strategic emerging businesses, overcome the technical weakness for both the enterprise and the industry to promote the industrialization and commercialization in China. According to the acquisitions of motor controlling system and agricultural CVT equipment, Weichai Power will strengthen its core competitive advantage on the new energy and CVT hydraulics powertrain system, which will vigorously promote the technological progress of China's high-end equipment manufacturing and new energy industry.
About Weichai Power Co., Ltd. (HKEX: 2338, SZSE: 000338)
Founded in 2002, Weichai Power Co., Ltd. ("Weichai Power" or "the Company") is a leading vehicle and equipment manufacturing conglomerate with comprehensive strengths in China. Its clusters include dozens of quality companies such as Shaanxi Heavy Duty Automobile Co., Ltd., Shaanxi Fast Gear Co., Ltd., KION Group AG, Linde Hydraulics GmbH & Co. (KG) and Dematic. The Company's business covers three major segments: vehicles and machineries, powertrain and smart logistics, formulating the most complete and the most competitive industry chain in the automobile industry across China. Weichai Power was listed on the Main Board of the Stock Exchange of Hong Kong on 11 March 2004 and on the Shenzhen Stock Exchange on 30 April 2007.
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this announcement. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. The forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements are a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents.
SOURCE Weichai Power