The City of Qingdao in China’s Shandong-province has become a partner of NEVS after making an initial investment of SEK 2 billion and acquiring a 22% share of NEVS through a directed share issue. Qingdao will make more investments in a joint venture company in China. NEVS is based in Trollhättan, Sweden where product development and manufacturing is situated.
Qingdao will invest in NEVS in consecutive stages. By doing so, NEVS gets a financially stable investor as well as a business partner that offers access to a vital market.
Qingdao, through its investment company Qingdao Qingbo Investment Co, Ltd, has inked a deal with NEVS’ parent company National Modern Energy Holdings Ltd. and with National Electric Vehicle Sweden AB (NEVS).
NEVS Chairman Karl-Erling Trogen said that this contract offers financial resources that represent a significant contribution to allow implementation of the NEVS business plan.
Kai Johan Jiang, CEO and main owner of NEVS, said that Qingdao is a long-term strategic partner in China, which means that it now has a big customer. Zhang Xingi, Mayor of Qingdao, said that the future lies on vehicles that use new energy sources.
Qingdao hopes to fully participate in this development. NEVS has its headquarters in Trollhättan. This is also where product development and vehicle assembly are done. It’s believed that there’s a great potential for Saab vehicles to succeed in China.
Qingdao will soon turn into the hub for NEVS’ efforts in the Chinese market. This means that exports will be sent through the Port of Qingdao, positioned strategically on the Chinese East Coast. As output at the Trollhättan plant will soon hit capacity, there will be a complementary manufacturing facility set up in Qingdao.