Lizhong Sitong Light Alloys Group, a leading Chinese producer of aluminium alloy materials and wheels, has secured two significant overseas contracts worth more than CNY 1.6 billion (USD 228 million) from prominent international automotive manufacturers. Investor optimism over the company’s growth prospects was evident in the market, with Lizhong’s shares [SHE: 300428] closing 0.7 per cent higher at CNY 18.63 (USD 2.59) in Shenzhen today.
Both contracts are expected to provide a notable boost to Lizhong’s operating performance in the coming years. In 2024, the company produced 21.4 million aluminium alloy wheels, generating CNY 9.2 billion in revenue from this segment alone, about 34 per cent of total earnings, according to its latest annual report.
The company announced that its Thai facility has been appointed as the designated aluminium alloy wheel supplier for a well-known global commercial vehicle brand. Mass production is scheduled to start in October, with the deal valued at CNY 833 million (USD 116 million).
Meanwhile, Lizhong’s Mexican plant has been selected to supply low-pressure cast aluminium alloy wheels to a renowned foreign automaker. The project is slated to begin mass production in September 2027 and run for four years, generating an estimated CNY 810 million (USD 112 million) in sales.
While the identities of both clients remain confidential due to non-disclosure agreements, Lizhong emphasised that the Thai contract marks its successful entry into the commercial vehicle market. The company added that securing these high-value orders from overseas partners demonstrates global recognition of its product quality and robust supply chain capabilities.
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