(Yicai Global) July 24 -- An affiliate of China Evergrande Group, China's second-largest real estate firm turned multi-sector conglomerate, will join hands with Germany's Hofer to produce electric powertrain systems as the Chinese firm doubles down on developing its first new energy vehicle.
A subsidiary under Evergrande Health Industry Group will set up a joint venture called Evergrande Hofer Powertrain with Hofer in Stuttgart, the Guangzhou-based health management firm said in a statement today, without disclosing the size of investment. Evergrande will have 67 percent and Hofer 33 percent of the JV's equity.
The JV strives to develop world-leading integrated powertrain core technologies and build a research and development base in China, the Chinese company added. Johann Hofer, the founder of the Nurtingen-based firm, will serve as chairman.
Evergrande Health started making inroads into NEV business last year and the pace has only accelerated this year. In January, it purchased a majority stake in the National Electric Vehicle Sweden, the owner of Saab brand, for USD930 million. It also bought a 58 percent stake in Shanghai's Cenat New Energy battery maker for CNY1.1 billion (USD159.8 million). Cenat was set up by Japan's Enax and China Automotive Technology and Research Center in 2010.
In March, Evergrande Health acquired 70 percent of China's TeT Drive Technology for CNY500 million (USD72.7 million). The Hubei province-based target firm owns e-Traction, a Netherlands-headquartered in-wheel motor maker.
Founded in 1980, Hofer has 15 research institutes and four production bases in Germany, US, UK, Italy, and Austria. It counts Mercedes-Benz, BMW, Volkswagen and Lamborghini as some of its clients.
Evergrande Health's [HK:708] stock price rose 1.8 percent to HKD9.10 (USD1.20) this afternoon. China Evergrande [HK: 3333] boosted its share price by 2.1 percent to HKD21.80.
Editor: Emmi Laine