(Yicai) Aug. 23 -- Lingyun Industrial said it will supply car parts for a new project of a luxury carmaker in Europe, likely bringing the Chinese firm revenue of between CNY2 billion and CNY2.5 billion (USD274 million and USD343 million).

The automaker notified Lingyun that it has been selected as the designated supplier of vehicle battery shells and threshold products for the project, the Hebei province-based firm announced late yesterday. The deal will be inked after finalizing details, it added.

The project will likely last around seven years, with mass production starting in January 2027, Lingyun pointed out, without disclosing further details.

Lingyun did not identify the buyer, but it is an existing customer, which according to its website include Mercedes-Benz, Audi, and BMW. It also won a local business development award May from Beijing Benz Automotive, the joint venture of BAIC Motor, Mercedes-Benz, and Daimler China.

The supply deal is Lingyun's latest achievement in developing the parts market for new energy vehicles and will expand its share of luxury car customers, according to the company. It is also the first time that Lingyun's threshold products have been included in the carmaker's parts supply system, it said.

Lingyun has been working to develop the NEV parts market and has begun providing body safety structural parts, NEV battery shells, auto pipelines, as well as other parts and components for leading domestic and foreign automakers.

Lingyun’s shares [SHA: 600480] fell 1 percent to CNY8.91 (USD1.22) apiece today, after jumping by as much as 2.3 percent at one point. The Shanghai stock benchmark fell 1.3 percent.

Editor: Martin Kadiev