Leading construction machinery manufacturer XCMG (000425.SZ) is joining hands 
with Tsingshan Holding Group, the world's biggest stainless steel producer with 
a focus on new energy, to invest 5.5 billion yuan (US$852.85 million) in 
establishing the XCMG Tsingshan New Energy Industrial Base (the "Base") in 
Xuzhou that will specialize in developing technologies, products, sales and 
services of new energy vehicles (NEV), batteries, electric motor control 
systems and other parts.

The project will cover 0.26 square miles in total, with the first phase 
estimated to build half of the base with an investment of 2.5 billion yuan 
(US$387.76 million).

"The Base projects 10 billion yuan (US$1.55 billion) in annual sales revenue 
and 200 million yuan (US$31 million) in annual tax upon completion and will 
greatly advance R&D, production and sales of XCMG NEV products while further 
consolidating our technological advantages in the field of electric products 
and services," said Donghai Luo, Deputy GM of XCMG and GM of XCMG Automobile 
Business Unit.

Since the Xuzhou Base was put into operation in 2015, XCMG Automotive has been 
able to achieve 30 percent growth every year and exceeded the 10-billion mark 
in 2020. 

In 2020, XCMG advanced a series of major projects including electric muck 
trucks, tractors and mixer trucks as well as new energy cold chain trucks, 
mining trucks, 8-ton compressed garbage trucks, barrel trucks, 18-ton 
sweeper-washer trucks, dust suppression trucks, along with loaders and port 
machinery that features multiple specifications.

With one of the most comprehensive product lineups, strongest R&D and a leading 
overall electrification solution, XCMG Automotive is now a top three ranking 
company in the domestic new energy heavy truck market. Internationally, XCMG 
exported its first flagship NEV product the E300 logistic cargo truck in 2018, 
followed by an off-road electric mining dump truck entering the markets of 
developed countries a year later. 

"We aim to devote great efforts in building the core industries related to 
vehicle integration technology and core components in the next few years, 
transforming the NEV business into a billion-yuan strategic sector and major 
growth point in the XCMG industrial chain," noted Luo.

For more information, please visit www.xcmg.com, or XCMG pages on 
Facebook(https://www.facebook.com/XCMGGroup), 
Twitter(https://twitter.com/XCMGGroup), 
YouTube(https://www.youtube.com/user/XCMGgroup), 
LinkedIn(https://www.linkedin.com/company/xcmg-imp-&-exp-co-ltd/) and 
Instagram(www.instagram.com/xcmggroup).

SOURCE: XCMG

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   Caption: XCMG Creates Strong Partnership with Tsingshan Group to Build New 
Energy Base for NEV R&D and Production