Sitong New Materials has become a supplier to several emerging automakers such as NIO, and has obtained a Tesla supplier code.
On July 23, 2019, Hebei Sitong New Metal Materials Co., Ltd. (Sitong New Materials, stock code: 300428) released an announcement regarding an investor relations activity. The announcement recorded the main questions exchanged between Sitong New Materials and institutional investors, along with the company's summary responses. Among them, Sitong New Materials' response to the question "What is the profound significance of Lizhong's acquisition of Tesla's supplier code?" has attracted widespread attention.
In the announcement, Sitong New Materials replied:
The demand for aluminum alloy wheels is trending towards high-end, large-size, and lightweight products. The consumption proportion of high value-added aluminum wheels in the market is constantly increasing.
Baotou Shengtai Auto Parts Manufacturing Co., Ltd., a subsidiary of the company, is jointly researching the "Development of Rare Earth Aluminum Alloy Materials for Lightweight Wheels in New Energy Vehicles" project with the Baotou Materials Research Institute of Shanghai Jiao Tong University. This aims to further improve the specific stiffness, specific strength, high-temperature resistance, and corrosion resistance of aluminum alloy wheel hubs, thereby achieving lightweighting of new energy vehicle wheel hubs.
The company has already mass-produced and developed multiple electric vehicle projects and obtained exclusive supply rights for BMW's iX3 electric vehicle in 2018. At the same time, the company has become a supplier for several emerging car manufacturers, including NIO, WM Motor, and XPeng Motors, and has obtained Tesla's supplier code. The company's successful entry into the supply chains of major new energy vehicle manufacturers such as Tesla and BMW can provide a sales guarantee for the company's future capacity expansion.
Background Information:
Established in 1998, Sitong New Materials is one of the largest manufacturers of intermediate alloys and grain refining products in China. In 2018, the company acquired Tianjin Lizhong Group Co., Ltd. through a share issuance. The latter is one of the largest aluminum alloy wheel manufacturers in China. After the acquisition, Sitong New Materials strongly entered the lightweight manufacturing industry of aluminum alloy wheels.
In April 2019, China Zhongji Investment participated in Sitong New Materials' private placement financing. In the automotive and new energy vehicle fields, China Zhongji Investment has invested in BAIC New Energy, Dayun Automobile, and other projects. In the future, it will continue to improve its investment layout in this field.
