Fostering Growth in Automotive Fasteners and Exploring New Industry Horizons

SHANGHAI,Dec. 4,2024 -- On the 10th anniversary of its acquisition of Nedschroef,Shanghai Electric(SEHK:2727,SSE:601727) marks a significant milestone with the groundbreaking of Nedschroef's second automotive fastener factory in Spain. Situated in Tarragona,a prominent city in northeastern Spain,this facility underscores Shanghai Electric's commitment to enhancing Nedschroef's capacity to deliver advanced fastening solutions across Europe. The Tarragona factory is a cornerstone of Nedschroef's three-year action plan,poised to optimize production capacity and drive operational efficiency.

On the 10th anniversary of its acquisition of Nedschroef,Shanghai Electric marks a significant milestone with the groundbreaking of Nedschroef’s second automotive fastener factory in Tarragona,Spain.

Since its acquisition,Nedschroefhas solidified its foundation in the automotive components industry. By operating two factories within Spain,Shanghai Electric and Nedschroef demonstrate a well-considered approach to leveraging regional strengths.

Nedschroef has steadily expanded its technological boundaries since acquiring CP Techseven years ago. This partnership has fueled advancements in high-precision and specialized components designed for unique applications. From hypercar chassis frameworks to landing gear for low-altitude manned aircraft,CP Tech's innovation capabilities are a key enabler of long-term business potential for Nedschroef. The partnership also aligns with Shanghai Electric's broader vision of fostering an ecosystem of collaborative innovation across industries,including automotive,aerospace,and specialized vehicles.

By integrating CP Tech's expertise,Shanghai Electric and Nedschroef are positioned to push the boundaries of component design and production,targeting advanced markets,such as aerospace and special-purpose vehicles. CP Tech's accolades,including certifications for its low-altitude manned aircraft,further highlight the transformative potential of this collaboration.

Shanghai Electric emphasizes creating an open,collaborative space to empower sustainable growth. This vision is realized through:

Supply Chain Optimization: Shanghai Zhenhua Bearings,a subsidiary of Shanghai Electric,will supply high-performance needle bearings,significantly reducing CP Tech's production costs and enhancing efficiency.

Market Expansion Opportunities:By leveraging Shanghai Electric's headquarters resources and industrial software partnerships,Nedschroef aims to expand Setup Wizard's visualization capabilities and penetrate the civilian automotive market.

Inclusive Corporate Culture: Shanghai Electric's supportive policies,including reliable employee welfare programs during the pandemic,highlight its long-term commitment to nurturing diverse and resilient corporate cultures.

"CP Tech,located in the heart of Europe,is uniquely positioned to amplify collaboration across Shanghai Electric's business segments. This synergy fosters mutual growth while addressing global market and technological shifts. Together,we will unlock new opportunities and expand our global reach," said Wu Lei,Chairman of Shanghai Electric.