(Yicai) Sept. 4 -- Shares in Zhejiang Yinlun Machinery advanced as much as 2.5 percent today after the Chinese producer of thermal management systems for electric cars, which regulate the temperature of the batteries, said that it has been chosen as designated supplier to a European automobile manufacturer in a deal expected to be worth CNY56 million (USD7.8 million) a year.

Yinlun Machinery’s share price [SHE: 002126] closed up 1.1 percent at CNY16.27(USD2.29) today. Earlier in the day it hit CNY16.50.

Yinlun Machinery’s Polish subsidiary Thermal Management Technology will supply thermal management systems to a unit of a European automobile manufacturer in batches starting from 2026, the parent firm said yesterday. The name of the customer was not given due to confidentiality reasons.

This is the second time that Yinlun Machinery has signed with this client, said the Taizhou-based firm, which counts foreign new energy vehicle makers such as Volvo, Porsche, General Motors and Ford among its customers.

The deal will not only boost the competitiveness of Yinlun Machinery’s NEV thermal management components and improve business, but it will also help its products penetrate the European market, it added.

Yinlun Machinery is one of China’s leading suppliers of vehicle heat management equipment. Its Shanghai plant supplies Tesla’s Shanghai gigafactory.

Overseas sales accounted for 22.4 percent of Yinlun Machinery’s revenue last year, according to the company’s latest annual report. Last year, two factories in Poland and Mexico came online.

Editor: Kim Taylor