Rheinmetall Secures Major Orders from Chinese Auto Industry
Rheinmetall Bags Significant Orders for Cylinder Heads and Battery Carriers
Rheinmetall, a technology group based in Düsseldorf, has secured two major orders from the Chinese auto industry. These orders, which are worth hundreds of millions of euros, are for the production of cylinder heads and battery carriers. Both components are to be manufactured in China.
The order for cylinder heads is quite substantial, amounting to several million units, with a contract value in the low hundreds of millions of euros. On the other hand, the production of nearly one million battery carriers has been ordered, with a contract value in the low tens of millions of euros.
Production Timeline for the Orders
The production of the cylinder heads is slated to begin in 2023 and run for a period of four years. These will be incorporated into a hybrid vehicle of the auto manufacturer. As for the battery carriers, their production is set to begin in 2025 and will run for seven years. These will be used in the new battery box of the auto manufacturer.
Orders Recorded by Rheinmetall’s Materials and Trade Division
The recent orders have been recorded by Rheinmetall’s Materials and Trade division, more specifically, its Castings business unit. The first order was given by a car manufacturer based in Shanghai, while the second order came from a battery joint venture of the same car manufacturer. Both orders will be fulfilled by Hasco KSPG Nonferrous Components (Shanghai) Co in China, a joint venture between Rheinmetall and Huayu Automotive Systems, a subsidiary of the Chinese Saic Group.
Rheinmetall’s Shares Gain Momentum
Following the announcement of these orders, Rheinmetall’s shares experienced a surge, gaining 0.72 percent in XETRA trading and reaching 250.60 euros. This indicates the positive impact of the orders on the company’s market presence and financial performance.
In conclusion, these significant orders from the Chinese auto industry further cement Rheinmetall’s position as a leading supplier in the automotive industry. With the production of these components set to begin in the coming years, Rheinmetall is poised to further strengthen its foothold in the automotive market, particularly in the field of hybrid and electric vehicle manufacturing.
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