(Yicai) July 10 -- Shares in Wencan Group surged as much as 5.6 percent today after the Chinese maker of alluminum alloy precision die-casting vehicle structural parts said that it has been chosen as designated supplier to two overseas new energy vehicle manufacturers in deals that could be worth as much as CNY1.2 billion (USD165 million).

Wencan’s share price [SHA:603348] closed up 4.12 percent at CNY29.31 (USD4). Earlier in the day it hit CNY29.74.

Wencan’s factory in Tianjin will supply motor housings to a well-known German vehicle manufacturer for the next five years, the Foshan-based company said yesterday. Mass production is expected to start in the second quarter of 2026 and the project should generate between CNY700 million (USD96 million) and CNY800 million over the period.

Another factory in Nantong, located at the mouth of the Yangtze River, will supply a variety of aluminum die-cast body structural components for two new models by another overseas electric car maker, it said. Mass production should start in the fourth quarter of 2026, and this project, which is also for five years, is expected to generate revenue of between CNY300 million (USD41.2 million) and CNY400 million.

The client of the Nantong factory is a new customer, said Wencan, which already counts Tesla, BYD, Huawei Technologies’ carmaking partner Seres, Volkswagen, Mercedes-Benz and BMW among its clients.

Overseas sales accounted for over half of Wencan’s revenue in 2023 at CNY2.7 billion (USD371.2 million), according to its latest annual earnings report. Apart from China, the firm also has production bases in Serbia, France, Hungary and Mexico.

Editor: Kim Taylor