Lizhong Sitong Light Alloys Group, a China-based producer and seller of lightweight aluminium alloy wheels, has secured yet another contract to supply wheels. The new contract is with a leading new energy vehicle maker who will source aluminium alloy wheels from Lizhong for its upcoming Thai plant.
Lizhong Group accelerates success, bags second major aluminium alloy wheels supply contract in record time
Through this new deal, Lizhong is expected to generate RMB 68 million (US$9.3 million) of sales revenue, which will increase the company’s total estimated revenue to as high as RMB 1.7 billion (US$233.3 million), taking into consideration all other deals the pair signed recently.
The earlier deals were for the carmaker’s domestic plants, with the delivery date set late this year. The upcoming Thai project is likely to start mass production in October 2024.
Lizhong has not disclosed the client’s identity but named the top four Chinese NEV startups Nio, Xpeng, Motors, Li Auto, and Hozon Auto, along with carmaker BYD, who already source alloy wheels from Lizhong. Among them, BYD and Hozon Auto are building NEV plants in Thailand, and both are expected to start operation next year, according to public information.
Following this deal, Lizhong Sitong Light Alloys Group’s shares shot up by 4 per cent to RMB 24.48 (US$3.40) intraday and closed 1.4 per cent up on Monday, September 18.