Recently, Zhongding Co., Ltd. issued an announcement that the company, through its wholly-owned subsidiary Zhongding Vibration Reduction, acquired 80.8494% of the equity of Sichuan Wangjin held by Li Yonghong, Li Weijun and Li Yongzhong, the shareholders of Sichuan Wangjin, successfully taking over Sichuan Wangjin Machinery Co., Ltd.
Sichuan Wangjin is a company mainly engaged in the R&D, production and sales of core safety and performance components of automotive chassis systems. It has five major technological capabilities including machining, stamping, welding, cold heading and assembly, and a complete R&D and testing platform for ball joint products. Its main products include automotive ball joint assembly components such as tie rods, connecting rods, control arms and ball pins.
It is reported that the ball pin products produced by Sichuan Wangjin are key performance parts of chassis structural parts and the main components of control arm products, and its ball pin technology is in a leading position in China. The acquisition of Sichuan Wangjin will enable Zhongding Vibration Reduction to master the core technology of ball pins, enhance the competitiveness of Zhongding Vibration Reduction's control arm products, and quickly seize the automotive lightweight market. At the same time, the stamping and welding control arms produced by Sichuan Wangjin are highly complementary to the forged aluminum control arms produced by Zhongding Vibration Reduction, which can improve the company's market share in the control arm market. In addition, the acquisition of Sichuan Wangjin will help the company improve the efficiency of fund-raising use, accelerate the company's industrial upgrading, meet the market demand for lightweight products, and enhance the company's market competitiveness.
December 2019