(15 September 2021, Hong Kong) – CMIC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group”, Stock code: 301039.SZ/01839.HK), the world’s leading high-end semi-trailers and specialty vehicles manufacturer, officially entered into a strategic cooperation agreement with Shandong Automobile Manufacturing Co., Ltd. (“Shandong Automobile”) in Laiyang, Shandong Province. Both parties will complement each other through cooperation and innovative development to jointly achieve breakthroughs in the market under the trend of van logistics and transportation. Dr. Li Xiaofu, the Chief Technology Officer of CIMC Vehicles and CEO of strategic business division of truck bodies business, and Tian Qiang, the party secretary and General Manager of Shandong Automobile, attended the ceremony and represented their companies to sign the strategic cooperation agreement. 

CMIC Vehicles and Shandong Automobile held a signing ceremony of strategic cooperation

In the ceremony of the strategic cooperation, Li Xiaofu mentioned that, "Based on CIMC Vehicles’ Sophisticated Manufacturing System, the ‘Light Tower’ plants under the TB strategy division can provide tractor manufacturers with products which have superb appearance and ultimate price-performance ratio. They will bring innovative use experience to customers and create more value. In the future, CIMC Vehicles’ TB business will continue to focus on the manufacturing of truck body products and the peripheral equipment. CIMC Vehicles will also establish a closer strategic partnership with Shandong Automobile. Through modular product design and specialized sophisticated manufacturing, both parties will jointly provide high-end products and services that are leading in the development trend of the urban distribution logistics industry for customers in the whole industry chain.”

Dr. Li Xiaofu, the Chief Technology Officer of CIMC Vehicles and CEO of strategic business division of truck bodies business made the speech

CIMC Vehicles’ TB business is an innovative business launched by CIMC Vehicles Group in 2019. As the global leader in high-end semi-trailers and specialty vehicles manufacturing, CIMC Vehicles actively grasped the opportunities of light trucks being more compliant and van-type within the market, launches the "TB" brand in a forward-looking manner, and established TB strategy division of CIMC Vehicles under the “TB” brand.

At the present, the member enterprises under the division include CIMC Vehicles (Shandong) Co., Ltd., CIMC Vehicle Terabyte Truck Body Technology (Zhenjiang) Co., Ltd., and CIMC Vehicle Terabyte Truck Body Manufacturing (Jiangmen) Co., Ltd.

CIMC Vehicles will provide six large modules for truck bodies and complete the assembly of the whole truck body in Shandong Automobile’s workshop

CIMC Vehicles will provide six large modules for truck bodies and complete the assembly of the whole truck body in Shandong Automobile’s workshop

Being the strategic partner, Shandong Automobile, a wholly owned subsidiary of Shandong Heavy Industry Group Co., Ltd, has the production qualifications for N1, N2, N3 trucks, specialty vehicles, battery-driven trucks and fuel-driven trucks and hybrid vehicles. The company integrates product research and development and technological advancement and is able to provide leading solutions in the light and medium truck industry and in China. It has also solved many key technologies and forward-looking technologies in the light truck industry.

CIMC Vehicles and Shandong Automobile have recently established friendly cooperation to develop joint development strategies. In November 2020, CIMC Zhenjiang Car Body Technology Co., Ltd. and Shandong Automobile established a cooperation for large designated reforms in which CIMC Zhenjiang Car Body Technology became the core trucks modification enterprise of Shandong Automobile in the Yangtze River Delta region. In July 2021, both parties jointly created a new cooperative production mode of the original truck bodies based on the concepts of the large designated reforms. In specific, CIMC “Light Tower” plants will provide six large modules for truck bodies to complete the assembly of the whole truck body in Shandong Automobile’s workshop and deliver the truck to clients.

Leaders took a group photo with guests

According to the strategic cooperation framework agreement, both parties will forge a strong alliance to conduct in-depth cooperation in the field of new product development and globalization.

On one hand, CIMC Vehicles will actively commence production and academic research campaigns to improve its R&D capabilities and level of product technology, while continuing to optimize costs. By adjusting product quality, promoting refined manufacturing, optimizing design and technique, to maintain a strong comprehensive competitiveness in cost. Shandong Automobile will carry out resource planning for CIMC Vehicles' original manufacturers in terms of products according to CIMC's Vehicles’ product resources and product costs. It will also expand the development of CIMC Vehicles’ products.

On the other hand, both parties will actively embrace globalization through complementary advantages. Shandong Automobile will support CIMC Vehicles’global manufacturing layout, while CIMC Vehicles will leverage its overseas resources to support the globalization of Shandong Automobile.

CIMC Vehicles said that the company will continue to expand the layout of manufacturing plants of truck bodies for light refrigerated trucks, enhance the research and development of next-generation product modules and production technologies. While achieving higher gross profit and operating efficiency, CIMC Vehicles will help China’s logistics industry to develop with high quality and sustainability.