(Yicai Global) June 23 -- Shares of Landai Technology Group, a Chinese power transmission equipment supplier, jumped after the firm said it intends to partner with Japanese electric motor maker Nidec to make new energy vehicle parts.
Landai's stock price [SHE: 002765] soared as much as 6.3 percent to CNY9.40 (USD1.40) as of 2.19 p.m. The shares have rallied more than 30 percent in the past 12 months.
The pair will team up on providing global car brands with new energy vehicle electric drive systems, reducers, and parts including gears, shafts, and metal enclosures, the Chongqing-based company said in a statement yesterday.
Landai has been doing business with Nidec since 2020. The Chinese firm has been supplying new energy components to the Japanese partner's subsidiaries in China since last year, according to the announcement.
Nidec will prioritize Landai's offering when providing products and services to renowned global brands of NEV manufacturers, according to the latest agreement. When using third-party products, Nidec will assist Landai to serve as a secondary supplier to the third party.
Kyoto-based Nidec mainly sells motors for vehicle manufacturers, including small precision motors and large motors. Its major customers in the Chinese market include Geely Automobile Holdings and Guangzhou Automobile Group.
Editor: Emmi Laine, Xiao Yi