Shanghai (Gasgoo)- Ningbo Huaxiang Electronic Co. released an announcement, stating that it would cooperate with GSR Capital to achieve the expanded production of Nissan battery technologies in China. The announcement states that Ningbo Huaxiang will conduct deepening cooperation with GSR Capital Advisors and GSR Capital to make use of Nissan battery technologies for expanded production in China, and it has signed memorandum in Shanghai on September 28th.
GSR Capital Advisors plans to establish a joint-venture company on battery technologies with GSR Capital, in which GSR Capital Advisors and GSR Capital hold 40% and 60% shares respectively. Ningbo Huaxiang plans to inject funds of RMB 100m to obtain 30% shares of the joint-venture company. The above joint-venture company plans to establish AESC China Power Battery Company with 30% shares.
Ningbo Huaxiang is a domestic leading company in producing auto interior and exterior decoration parts including panel boards, door planks, wood trims and rearview mirrors. Previously, it has invested in related auto part companies for many times. But till now, Huaxiang German still keeps in loss. It’s a doubt whether Ningbo Huaxiang’s joining in Nissan Battery will obtain predicted benefits or not.
Nissan Battery is a global leading power battery company. Its products have been used in Leaf, e-NV200 and some models under Renault. It provides approximate 300,000 sets batteries in more than six years with high quality. However, despite its good global performance, it has not entered into the domestic market. Besides, Ningbo Huaxiang is expected to have deepening participation in Nissan Battery’s technological and production links, forming complementary benefits with the former businesses, when the acquisition is completed.
However, Ningbo Huaxiang may also face high market risks after the investment. Almost all the domestic power battery companies are planning to expand capacities recently, creating fierce market competition.
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