Shares in China’s Sanhua Intelligent Controls have soared this morning after a subsidiary penned an exclusive worldwide deal to supply cooling system parts for BMW’s electric vehicle platforms.
Its stock [SHE:002050] was up more than 7.4 percent at CNY15.75 (USD2.26) as of 1.09 p.m.
The BMW contract should bring in a total CNY600 milion (USD86 million) to Sanhua Automotive Components during the life of the vehicles that will use the parts, the Zhejiang province-based parent said in a statement yesterday.
Sanhua Automotive Components has been widening its reach in the new-energy vehicle market recently, signing similar deals with General Motors, Volvo, and Chinese carmaker Nio.
The latest contract will see Sanhua supply two cooling part assemblies, a thermal expansion valve with solenoid valve and an electronic expansion valve and chiller, for BWM’s two main EV platforms: Cluster-Architektur and Frontantrieb-Architektur, or CLAR-WE and FAAR-WE. Mass production of cars made using the platforms is expected to begin in 2022.
Source: yicaiglobal.com
