Shenma Electric Power (603530.SH) plans to build a digital factory for new materials products in Vietnam's power grid (Phase I)

Zhitong Finance App News, Shenma Electric (603530.SH) announced that in order to meet the company's overseas business development needs, improve the overseas industrial supply chain system, strengthen deep cooperation with world-renowned customers, and enhance customer stickiness, the company plans to invest in the establishment of Shenma Electric Power Vietnam Co., Ltd. in Vietnam through SHEMAR POWER PTE.LTD, a wholly-owned subsidiary in Singapore (tentative name, ultimately subject to actual registration), and invest in the construction of a digital factory for Shenma Electric Vietnam power grid new material products The project mainly produces related products such as external insulation for substation equipment and composite external insulation for transmission and distribution lines.

The project was implemented in two phases. The total investment amount of the first phase of the project was not more than RMB 122 million. In addition to the actual payment of the registered capital of the Vietnamese company, it will also be used for plant/land leasing, equipment investment, and the purchase and construction of supporting facilities. The second phase of the project is still in the early planning stage. Subsequent companies will fulfill their information disclosure obligations according to the actual situation and in accordance with the requirements of the regulations.

The establishment of a Vietnamese company and construction of a Vietnamese production base is an important step to promote overseas production capacity layout for products related to external insulation for substation equipment and composite external insulation for transmission and distribution lines for overseas markets such as Europe and the United States. The construction and implementation of this project is conducive to taking advantage of Vietnam's location and development advantages to respond more flexibly to changes in the macro environment and international trade pattern, effectively meet the higher demand of overseas customers for supply chain security, enhance the company's ability to cope with the risk of tariff adjustments and trade barriers, and help the company further seize overseas market share.