NEVS has inked a framework agreement to acquire a stake in New Long Ma (NLM), a transport vehicle manufacturing company in Fujian province, China.
NLM is a part of the Fujian Motors Group, owned by the Fujian provincial government. The company has during the last three years invested RMB 3bn (US$460m) in a new plant, with a production capacity of 150 000 vehicles per year.
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NLM’s product portfolio includes an electric commercial distribution minivan which is a part of the agreement. The vehicle is the third most sold electric minivan in China, with ,more than 12,000 sales during first production last year.
“This deal broadens our product portfolio with an additional vehicle type, which contributes to our vision of sustainable transport solutions,” said NEVS chairman, Kai Johan Jiang.
“The deal is of significant importance to implement our business plan and this will speed up our time to market.”
The framework agreement was signed by Fujian Motors Group, Long Ma Industrial Co, Nevs AB and Nevs’ part owner, State research Information Technology, SRIT.
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By GlobalDataNevs will acquire 50% of the shares of New Long Ma and SRIT 15%. Fujian Motors Group remains as a 20% owner, with Long Ma and others, 15%.
Fujian New Long Ma Motor Co was established in 1997 with registered capital of RMB1.15bn.
New Long Ma Motor is affiliated to Fujian Motors Group Co which owns Fujian Benz- a commercial vehicle manufacturing base in cooperation with Daimler – a China listed vehicle company King Long Motor Group and a JV between China Motor and Mitsubishi Motors known as South East Motor.
