(Yicai) Oct. 22 -- Jingu Group said the Chinese firm has been named the designated supplier of lightweight low-carbon wheels for the European factory of a well-known carmaker, entering Europe with this product for the first time.

Jingu will adopt the original equipment manufacturer model to develop and produce its branded Avatar low-carbon wheels for the client’s new electric vehicle model manufactured in Europe, the Fuyang-based company announced late yesterday. Delivery in batches will start in 2027. 

Jingu had entered the client's global supply chain system before the latest project, it noted, without disclosing its name, the project's length, or sales amount due to a confidentiality agreement.

Jingu is a global first-tier supplier for US auto giants General Motors and Ford Motor, as well as Germany's Volkswagen Group, with all three having joint venture auto plants in China, according to Jingu's financial report for last year. 

The Avatar low-carbon wheels developed by Jingu are of similar weight to aluminum alloy wheels, but about five to six times as strong while costing less to produce, which can help carmakers cut costs and lower carbon emissions along their supply chains. The company has received many orders from domestic and foreign automakers for this product in recent years, including becoming the designated supplier for the US plant of a renowned client in May, expecting to generate revenue of USD158 million in the first five years of this project's life span.

Shares of Jingu [SHE: 002488] closed up 1.6 percent to CNY10.34 (USD1.45) in Shenzhen today, the benchmark Shenzhen Component Index closed down 0.62 percent.

Editor: Martin Kadiev