Qinchuan Machine Tool subsidiary invests 52 million yuan to build an intelligent manufacturing line for new energy reducer gearboxes

[Finance News] Qin Chuan Machine Tool (000837) announced on March 27 that its wholly-owned subsidiary, Shaanxi Fastron Walker Gear Co., Ltd. (hereinafter referred to as “Walker Gear”), plans to invest 52 million yuan to build an intelligent manufacturing line for new energy drive motor gears and shaft components. The project duration is 34 months. The proposal was approved at the company’s 23rd meeting of the 9th Board of Directors on March 25 and does not require shareholder approval.

The announcement states that the project will be implemented at the Walker Gear factory site inside Yongle Town, Jinghe New City, Xi’an New Area, Shaanxi Province, at the northeast corner of the intersection of Gaojing Avenue and Zhengyang Avenue. The total investment is 52 million yuan, fully self-funded by the company. The project will purchase precision processing and testing equipment such as gear grinding machines, gear measurement centers, CNC chamfering machines, and will include automation upgrades, laser welding units, multi-purpose furnace heat treatment systems, dynamic balancing machines, and ultrasonic flaw detection equipment. The goal is to establish a comprehensive, automated, and intelligent manufacturing system covering rough machining, finishing, heat treatment, and quality inspection.

Qin Chuan Machine Tool stated that this project aims to seize growth opportunities in the core components market of new energy vehicles, break through high-precision gear manufacturing technology bottlenecks, and enhance the company’s core competitiveness. Through intelligent upgrades of production lines and iterative optimization of core processes, the project will significantly improve the processing accuracy and batch consistency of high-precision gear reducers and shaft components, precisely meeting the customized and high-performance demands of new energy vehicle manufacturers.

The company also highlighted potential risks, including macroeconomic cycle fluctuations, adjustments in new energy industry policies, lower-than-expected downstream demand, accelerated technological iteration, increased industry competition, and external risks such as the need to complete environmental, energy, and safety assessments for project approval. The company will improve its risk management system, closely monitor industry policies and market trends, and actively coordinate with relevant authorities to expedite approvals.

Regarding the project’s impact on the company, Qin Chuan Machine Tool pointed out that the project aligns with the national “dual carbon” strategy and the support policies for the new energy industry. It will promote Walker Gear to complete process iterations and realize intelligent capacity for high-precision transmission components, further improving the company’s new energy vehicle core parts supply chain layout. Since project funds will be allocated in phases according to construction progress, there will be no significant impact on the company’s daily operations and performance in the short term.

Data shows that Walker Gear was established in Xi’an New Area, Shaanxi Province, with a registered capital of 1.3 billion yuan. Its business scope includes gear and gear reducer manufacturing and sales, automotive parts R&D and manufacturing, among others.

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