Asia-Pacific Technology plans to construct its much-awaited aluminium manufacturing project for e-vehicles

Asia-Pacific Technology recently concluded its 18th meeting of the 6th Board of Directors on January 12, 2024. During the meeting, the board reviewed and approved the Proposal on Signing the Investment Agreement and Venturing into Overseas Investments.  The chosen site for this avant-garde project is the Anhui Xinwu Economic Development Zone, with a substantial total investment reaching an impressive RMB 2 billion.

The construction of the project will be carried out in two phases, with the first phase comprising an annual output of 150,000 tonnes of lightweight aluminium for automobiles, along with manufacturing and R&D centres for 600,000 sets of lightweight parts. Upon completion of the project and its full-scale production, it is anticipated that the facility will have the capacity to produce 3 million sets of lightweight parts annually.  

Asia-Pacific Technologies has strategically invested to align with China's robust policies and industrial trends in new energy vehicles, aerospace, and industrial thermal management. This move is aimed at capitalizing on the company's strengths in innovation and market depth, facilitating the upgrading of the industrial chain and expanding its reach. The investment is anticipated to yield promising prospects in the market.

Jiang Han, senior researcher of Pangu Think Tank, said,  "As a leading manufacturer of automotive aluminum extrusion materials in China, Asia-Pacific Technology has a strong production capacity of aluminum extrusion materials, and has accumulated rich experience and technology in this field. Therefore, the company applies the existing technology and experience to the auto parts business, which can realize the vertical expansion from raw materials to parts faster, and improve the overall competitiveness of the company. In addition, the market demand for the auto parts business is also growing, providing the company with more room for development."

The company has reached an agreement with the People's Government of Wanqi District in Wuhu City to jointly sign the Investment Agreement. The remaining components of the project will be undertaken in the second phase. The company has decided to utilize its internal funds or funds generated through self-raising to invest in the development of a high-end light parts Research and Development (R&D) and manufacturing base project.

This collaboration is based on the principles of equality, mutual benefit, and shared development. The Investment Agreement was successfully signed on the same day, solidifying the commitment of both parties to the investment cooperation for this project.It is projected that, once fully operational, the project will generate an estimated annual new operating income of RMB 4.5 billion, with an anticipated annual new after-tax profit of approximately RMB 450 million. This development is expected to significantly contribute to the company's growth and the economic development of the region.