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5. Dongfeng Motor Parts And Components Group Co., Ltd. Business Report FY ended Dec. 2022

Dongfeng Motor Parts And Components Group Co., Ltd. Business Report FY ended Dec. 2022

New project

Wheel plant relocated to Zhangwan District, Shiyan City, Hubei Province
-The Zhangwan District People’s Government of Shiyan Municipality of Hubei Province held an intelligent plant project signing ceremony with Dongfeng Motor Chassis Systems Co., Ltd. (Dongfeng Motor Chassis Systems), a Dongfeng Motor Parts and Components Group Co., Ltd. (DFPC) subsidiary. The project plans to relocate the entire wheel plant of Dongfeng Motor Chassis Systems to the DFPC Industrial Park in the Shiyan Industrial New Area in Zhangwan District, and to build a new intelligent plant that is efficient, safe, low-carbon and eco-friendly through upgrades in technological equipment and intelligent manufacturing technologies as well as application of low-carbon and eco-friendly technologies. With a total investment of CNY 400 million, the project will mainly be engaged in the R&D, production and sales of commercial vehicle wheels and have a planned land area of around 53,000 square meters and a new plant area of around 46,000 square meters. With 12 automated production lines relocated and added, the new plant will have an annual capacity of 500,000 steel wheels with inner tubes and 2 million lightweight tubeless steel wheels. The project is scheduled to start construction by the end of March 2023 and complete the overall relocation of the plant and put it into full operation by the end of September 2024. (From a DFPC official WeChat account press release and a Shiyan Municipal People’s Government official website press release dated November 29, 2022)

DFPC officially opens industrial park
The company announced that it held the opening ceremony of its smart equipment industrial park in Shiyan City, Hubei Province. This move represents a huge milestone for DFPC’s Shiyan plant in its transformation and upgrading process. The industrial park is expected to deliver an annual product output value of over CNY 3 billion. Built based on digitization, automation, informatization, and intelligence, the industrial park mainly produces automotive equipment products such as dies, machine tools, digital and intelligent technology products, as well as automotive parts such as reducers for New Energy Vehicles, special assemblies for off-road vehicles, and high-end precision gears. Two subsidiaries of DFPC, namely Dongfeng Machine Tool Plant and Die Branch of Dongfeng Die & Stamping Technologies Co., Ltd., have moved into the park. The largest BIPV (building integrated photovoltaics) project in Hubei Province is also constructed there, capable of generating 460 million kWh of clean electricity and reducing 390,000 tons of CO2 emissions during its entire life cycle.

Production of overhead car air conditioners begins
The first 24V overhead car air conditioner co-developed by Hisense Group and Dongfeng MAHLE Thermal Systems Co. Ltd. (a subsidiary of Dongfeng Motor Parts and Components Group Co., Ltd.) rolled off the production line. The first batch of air-conditioning assemblies have been sent to commercial vehicle customers. The car air conditioner is powered by batteries. It can flexibly adjust the temperature and humidity of the air in the car when the engine is turned off. It also solves several problems such as fuel consumption caused by the previous air conditioner, exhaust pollution, and engine wear. (From a press release dated May 19, 2022)

Strategic cooperation

-Dongfeng Motor Parts and Components Group Co., Ltd. (DFPC) announced a strategic partnership with Xiangyang Da An Automobile Test Center. The two companies will cooperate in fields such as parts testing and metrological verification, technical support in verification, and sharing testing facilities. DFPC also formed a strategic partnership with Plug and Play China Wuhan Innovation Center. They will cooperate in searching, matching, testing, and development of innovative technologies; demonstration, dissemination, and incubation of innovation achievements; implementation of innovation activities; and branding. (From a press release dated February 27, 2023)

-Wuhan Iron & Steel Co., Ltd., a subsidiary of Baosteel Group Corporation, held a signing ceremony for a joint studio in Shiyan with Dongfeng Motor Chassis Systems Co., Ltd. ( Dongfeng Motor Chassis Systems). The two companies will focus on reducing the weight of the chassis and will work to reduce the carbon content of high-strength steel through deepening research and development. In addition, The two companies will accelerate the development of green and low-carbon technologies and promote initiatives aimed at increasing the added value of the entire value chain. (From a press release dated February 21, 2022)