On March 10th, Wolong Electric Group Co., Ltd. officially signed a JV contract with ZF Friedrichshafen AG. Affected by the novel coronavirus pneumonia（NCP）, the contract was launched in Shaoxing, Shanghai and Schweinfurt，Germany.Through real-time video transmission，the three places accomplished global "online signing" simultaneously.

Online signing ceremony site

The signing ceremony officially started at 3:30 p.m. (8:30 a.m. CET) on the 10th, jointly chaired by Mr. Douglas Pang, board member of Wolong Holding Group and CEO of Wolong Electric Group，and Mr. Julian Fieres, Head of Sales & Strategy ZF Division E-Mobility. Mr. Chen Jiancheng, Chairman of Wolong Holding Group, Mrs. Jenny Chen, Vice Chairman and President of Wolong Holding Group，Mr. Jörg Grotendorst, Head of ZF Division E-Mobility，Mr. Zhen Chen, Head of ZF Division E-Mobility Asia Pacific and other senior leaders attended.

Mr. Ma Weiguang, the Secretary of Shaoxing Municipal Committee of CPC，Lu Wei，Committee member and the Secretary-General of Shaoxing Municipal Committee of CPC，Shao quanmao，Vice Mayor of Shaoxing Municipal People’s Government， Tao Guanfeng, Secretary of Shaoxing Shangyu District Committee of CPC，Xu Jun，Vice Secretary and Chief Executive of Shangyu District，and heads of relevant units of the city and district attended and witnessed the signing ceremony.

Mr. Douglas Pang and Mr. Julian Fieres first introduced the history of the JV project and the main contents of the future cooperation. It is reported that the teams of the two sides started preliminary discussions as early as May 2018, and successfully signed the memorandum of understanding（MoU）on joint venture in November last year after project investigation, signing of the letter of intent on the feasibility of the joint venture and a half year of all-round discussion and analysis. Memo information shows that the joint venture company is named " Wolong ZF Automotive Electric Motors Co., Ltd." And its product range includes automotive traction motors for electric vehicles, plug-in hybrid vehicles and micro-hybrid vehicles. The company's initial registered capital is 53.85 million euros, of which Wolong subscribes for 39.85 million euros and contributes with the entire assets of the automotive motor business unit, accounting for 74% of the registered capital of the JV company. ZF China subscribed for 14 million euros and contributed in cash in CNY, accounting for 26% of the registered capital of the JV. After the signing of the JV contract, both parties will carry out a series of preparatory work, with a view to the formal operation of the joint venture company as soon as possible.

 signing site: synchronous signing in Germany, Shanghai and Shaoxing 

Wolong ZF Automotive Electric Motors Co., Ltd. will set up its headquarters in Shangyu, and set up a division plant in Serbia this year, and maybe set up division plant in North America in the future. With the advantages of both parties in the new energy vehicle motor and powertrain market, the company will provide motor and parts to world-class parts suppliers and automobile manufacturers. Jörg Grotendorst, Head of Division E-Mobility of ZF, said that Wolong is a reliable partner that complements ZF’s strengths and, moreover, adds to them. “I am proud that today, with the signing of this contract, we elevate our partnership to a Joint Venture, to the next level.”

Chairman Chen Jiancheng delivered a speech at the signing ceremony. He said that as a multinational group that has basically completed the global layout, Wolong has a short list of main engine plants, owners and contractors in almost every corner of the world. It can participate in the bidding of motor projects around the world, meet the needs of many global top 500 enterprises including ZF for supporting and service, and compete with ABB and Siemens in this industry.

"This joint venture is a real alliance of strong powers. We plan to achieve a total investment of 320 million euros and a sales revenue of 830 million euros by 2025, with more than 2000 employees worldwide. " Chairman Chen said that this cooperation will not only help ZF's development strategy of "taking root in the Chinese market and serving the Chinese market", but also help Wolong to expand and strengthen the development strategy of the motor sector, including EV Motor, in line with the common interests of both sides.

ZF leadership team

Shao quanmao, vice mayor of Shaoxing Municipal People’s Government, delivered a speech at the ceremony. He said that the JV contract is an important milestone for the two companies to achieve complementary advantages and seek win-win cooperation. It conveys the firm confidence of entrepreneurs in the current development and the China market, and also brings new momentum to the current epidemic fight and economic development. The local government will also create a legal and international business environment and do our best to support the development of the joint venture.

With the continuous development of the new energy vehicle market, the cooperation between Wolong and ZF will continue to deepen in the future, making positive contributions to the reduction of carbon dioxide emissions. We hope that through equal, sincere and efficient cooperation, Wolong ZF Automotive Electric Motors Co., Ltd. will become the global leader in the new energy automotive motor industry.