On January 27, Chuanhuan Technology released an announcement stating that it intends to reach a deep cooperation with the Management Committee of the Anhui Dangtu Economic Development Zone, planning to invest approximately 1.1 billion RMB to build the "Chuanhuan Technology (East China) Intelligent Manufacturing Headquarters Base Project" in the region.
The project will primarily produce products such as hoses and assemblies for automotive fuel systems, cooling systems, and exhaust systems, as well as liquid cooling piping assemblies for liquid-cooled servers and energy storage equipment; these are mainly applied in vehicle manufacturing, the liquid cooling market, energy storage, and other emerging fields.
To ensure the rapid implementation of the project, the Board of Directors of Chuanhuan Technology reviewed and approved the relevant proposals on January 26. The company decided to use 100 million RMB in self-raised funds to register and establish a wholly-owned subsidiary, "Chuanhuan Technology (Anhui) Co., Ltd.," in Dangtu County, Ma'anshan City, Anhui Province, to serve as the construction and operation entity for this project.
The terms of the agreement show that both parties have explicit requirements regarding the scheduling of funds. The new project company must complete an initial paid-in capital contribution of no less than 50 million RMB within three months of its registration and establishment. Additionally, the agreement stipulates that the project company must operate in the locality for no less than 20 years from the date of registration.
Chuanhuan Technology stated that signing the "Investment Agreement" with the Management Committee of the Anhui Dangtu Economic Development Zone to construct the Chuanhuan Technology (East China) Intelligent Manufacturing Headquarters Base Project is based on the needs of the company's strategic planning layout. It aims to build an East China intelligent manufacturing headquarters base; once the project is completed, it will achieve dual-base operations, significantly enhancing the company's service capabilities and market competitiveness in the East China region.
In the future, this will help to consolidate market share in the automotive field, further expand into emerging markets such as energy storage, data center liquid cooling, and sealing and vibration damping, optimize the company's product structure, and achieve the company's sustainable development.
Source：EnergyTrend