In order to further deepen the company's globalization strategy layout, better explore the international market and serve international customers, Shindanda's subsidiary Shindanda Power Technology Co., Ltd. invested about RMB 1.9 billion in Hungary through its subsidiary Hungarian Shindanda Power Technology Co., Ltd. in the first phase of the construction of new energy automobile power battery factory, which is mainly engaged in the business of lithium-ion battery, power battery system manufacturing and sales.
The Hungary project is the first own production base of Shinewanda in Europe, and also the third overseas factory following Shinewanda's opening of the globalization layout in New Delhi, India in 2017, marking a new step in Shinewanda's globalization strategy. The project is to further improve the company's business layout and enhance the company's global market share, which is of great significance in promoting the company's long-term stable development.
Hungary became the preferred place for Xinda's own factory in Europe mainly based on the fact that Hungary has a long history of automobile industry development and gathered a large number of vehicle enterprises, coupled with its pivotal position in the middle of Europe, which facilitates Xinda to respond to customers' demands quickly and complete localized production.
Secondly, in 2022, the European Union reached an agreement on the plan of "zero carbon dioxide emissions from all passenger cars and light commercial vehicles on sale in the European Union market from 2035", and Hungary responded positively to this plan, and actively promoted the transformation of the automobile manufacturing industry to electrification. Together with the deepening economic and trade relations between China and Hungary in recent years, it provides a natural investment environment for the construction of Xinda's Hungarian factory.
Based on the favorable business environment in Hungary and the business opportunities brought by the green transformation of the automobile industry, the project will rely on SINWONDA's nearly 30 years of manufacturing experience and efficient operation mode, and is committed to building a world-class high-end, intelligent and green power battery production base, contributing to the green transformation of Hungary's automobile industry, accelerating the process of decarbonization and zero-emission in Europe, and contributing to the realization of the global dual-carbon goal with China's wisdom and China's strength. China's wisdom and strength.
