• Mon
  • Sep 15, 2014
  • Updated: 9:53am

Firm goes full speed ahead

PUBLISHED : Tuesday, 19 July, 2011, 12:00am
UPDATED : Tuesday, 19 July, 2011, 12:00am

Zhejiang Geely Holding Group is expanding the scale of its vehicle parts and accessories manufacturing base in Hangzhou Bay in an effort to establish a supply chain of high-quality products.

The company signed a new round of agreements in January with major vehicle parts and accessories suppliers from South Korea, France, Japan, the United States and from within the mainland to establish operations in the manufacturing base.

So far, more than 20 investment projects have been signed, with a total investment of more than 30 billion yuan (HK$36 billion). When completed, the manufacturing base is expected to have an annual production value in excess of 10 billion yuan.

Over the past year, Geely has made progress in the establishment of a supply chain for car making using the best suppliers from around the world, with the goal of becoming one of the world's top 500 enterprises.

Geely gained publicity in August last year with the acquisition of a 100 per cent stake in the Volvo Car Corporation from Ford Motor for US$1.8 billion.

According to Li Shufu, chairman of Geely Holding Group, despite the acquisition, Volvo will continue to strengthen its existing European and North American markets, while increasing its presence on the mainland.

Instead of running the European company with his own executives, Li, who assumed the chairmanship of Volvo, appointed Stefan Jacoby, CEO of Volkswagen Group in the US, as president and CEO of Volvo Cars.

Under the new ownership, Volvo Cars will retain its headquarters and manufacturing presence in Sweden and Belgium.

As part of the deal, Volvo and Ford will maintain a close relationship for components and other supplies.

Geely is one of the mainland's top 10 car manufacturers and also among the country's top 500 firms. Established as an independent firm in 1986, Geely launched its car manufacturing business in 1997. The company says that over the past 10 years it has grown faster than any other company in the mainland car industry, and is the only Chinese car manufacturer to have developed its own range of engines - including eight series of engines between 1 litre and 1.8 litres, supporting manual and automatic transmissions. In 2005, Geely Automobile Holdings was listed on the Hong Kong stock exchange and is responsible for the majority of Geely's manufacturing operations.

Headquartered in Hangzhou, Geely now operates six car assembly and power-train manufacturing plants on the mainland that are located in Lanzhou (Gansu province), Linhai (Zhejiang province), Luqiao (Zhejiang province), Ningbo (Zhejiang province), Shanghai and Xiangtan (Hunan province).

These facilities enable a production capacity of approximately 300,000 cars per year.

Geely and its associated companies have established operations that span the value chain, from research, development and design to production, sales and servicing.

They are a fully integrated independent car manufacturer, producing vehicles, engines and transmissions.

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