YIXING, Jiangsu – Far East Smarter Energy Co., Ltd. (FESE), a subsidiary of Far East Holding Group, signed an agreement here with Detroit Electric Holding Co., Ltd. (Detroit Electric) and China Yixing Industrial Park for Environmental Science & Technology Development Corp. (ES&TP) to establish a joint venture company Detroit Electric Vehicles Co., Ltd. in Yixing, Jiangsu Province on February 18.
The new JV company will be engaged in the R&D, manufacturing and sales of electric vehicles, parts and relevant technologies.
The JV has a total investment of $1.8 billion and a registered capital of $600 million including $300 million from Detroit Electric with 50 percent of the equity shares, $240 million from FESE with 40 percent equity shares and $60 million from ES&TP with remaining 10 percent equity shares. The JV will also finance $1.2 billion through bond and bank loans on its own after its establishment.
“Far East Holding Group has confidence on the development of NEVs and will develop world-class NEV products at the joint venture company. The plan of the JV project would be 50,000 NEVs in output capacity by 2020, 100,000 NEVs in cumulated sales by 2021, and 1 million NEVs in production and sales by 2030,” said Jiang Xipei, secretary of the Party Committee and board chairman of Far East Holding Group.
As planned, the JV will begin construction of its production facilities this year, receive NEV production license in 2018 and start to sell its OEM products at the same year, and roll off its first vehicle from the assembly line in 2019.
“We plan to produce international standard electric vehicles with the same quality as those of the world-class top brands within five years. We will sell 30 percent of our products in China and deliver the remaining 70 percent to Europe and the U.S.,” said Albert Lam, chairman and CEO of Detroit Electric.