Nevs signs framework agreement for 50% stake in transport vehicle manufacturing company in China; electric minivan to portfolio
17 February 2016
National Electric Vehicle Sweden (Nevs) has signed a framework agreement on taking a 50% stake in Chinese transport vehicle manufacturing company New Long Ma (NLM). NLM is part of the Fujian Motors Group, owned by the Fujian provincial government. The company has during the last three years invested three billion RMB (US$459 million) in a new plant that today has a production capacity of 150,000 vehicles per year.
NLM’s product portfolio includes an electric commercial distribution minivan which is a part of the agreement. Currently, the product is the third-most sold electric commercial minivan in China, with more than 12,000 units sold during its first production year 2015, according to Nevs.
This deal broadens our product portfolio with an additional vehicle type which contribute to our vision of sustainable transport solutions. The deal is of significant strategic importance to implement our business plan and this will speed up our time to market.
—Kai Johan Jiang, Chairman of Nevs
The cooperation will also play an active role in fulfilling Nevs’ offer to Panda New Energy with 50,000 electric logistic vans and 50,000 electric mini-buses.
The framework agreement was signed by the Fujian Motors Group, Long Ma Industrial Co.,Ltd, Nevs AB and Nevs’ part-owner State Research Information Technology, SRIT. According to the agreement, Nevs will acquire 50% of the shares of New Long Ma and SRIT 15%. Fujian Motors Group remains as a 20% owner and Long Ma and others 15%.
Fujian New Long Ma Motor Co., Ltd. was established in April 1997 and is affiliated to Fujian Motors Group Co., Ltd., which owns Fujian Benz—a commercial vehicle manufacturing base through cooperation with Daimler, a China-listed vehicle company King Long Motor Group, and a JV between China Motor and Mitsubishi Motors called South East Motor.
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