(Yicai Global) Aug 17 -- Guoxuan High-Tech Co., Ltd. [SZ: 002074] announced that its wholly-owned subsidiary, Hefei Guoxuan High-Tech Power Energy Co., Ltd. inked an agreement yesterday with Zhejiang Kangsheng Co., Ltd. and the Administration Committee of Luzhou High-Tech Industrial Development Zone on August 16, to jointly build a power battery base in Luzhou, with total estimated investment of USD450 million (CNY3 billion), and annual power battery production capacity of one billion amp-hr. The project will develop in two phases. With an investment of CNY1 billion, the annual production capacity of the phase-1 project will reach 300 million amp-hr upon its completion.
Hefei Guoxuan High-Tech Power Energy and Zhejiang Kangsheng will jointly invest to establish a new joint venture company in Luzhou, with registered capital of CNY200 million, of which Hefei Guoxuan will contribute CNY130 million for 65 percent of total equity in the joint venture; and Kangsheng will contribute CNY70 million for 35 percent.
The deal will cement Guoxuan High-Tech's position in the power battery market in southwestern regions, and increase its market potential, as well as consolidating its leading position in the power lithium battery (alternatively known as "new-energy vehicle battery") market.
Zhejiang Kangsheng specializes in processing and sales of copper rifled tubes and precision brass.