Shandong Heavy Industry Group and Liaocheng Municipal People’s Government Sign Strategic Agreement for Cooperation to Accelerate Shandong Automotive Industry Integration

　　On the afternoon of June 4, 2021, the signing ceremony of the strategic cooperation framework agreement between Shandong Heavy Industry Group and Liaocheng People's Government was held in Liaocheng, Shandong. Liaocheng City CCP Secretary Sun Aijun, Mayor Li Changping, Shandong Heavy Industry Group CCP Secretary and Chairman Tan Xuguang, and Luxin Group CCP Secretary and Chairman Li Wei attended the signing ceremony.

　　This strategic cooperation is an important measure to implement Shandong's high-quality integration of automotive industry resources under the background of the new "four modernizations: scale, group structure, high-end, and branding" for the Shandong automotive industry.

　　Jiang Kui, general manager of Shandong Heavy Industry Group, and Li Changping, mayor of Liaocheng, signed a strategic cooperation framework agreement. According to the agreement, the two parties will determine the establishment of a long-term comprehensive strategic partnership in accordance with the principle of "complementary advantages, mutual benefit, and common development", focusing on the current needs of Liaocheng's intelligent manufacturing transformation and upgrading, and establishing a combination of short-term and long-term cooperation mechanism for the goals. It will be based on industrial development and market expansion and will carry out multi-level, multi-field, and all-round cooperation to jointly promote the industrial investment layout and cluster construction of Shandong Heavy Industry Group in Liaocheng, promote the development of the entire green intelligent manufacturing chain of the Liaocheng bus industry, and promote high-quality development of regional economy and industrial transformation and upgrading in Liaocheng.

　　Wang Zaixin, CCP Secretary and Chairman of Shandong Jiaotong Group, a subsidiary of Shandong Heavy Industry, and Jin Tongyuan, CCP Secretary and Director of the Liaocheng SASAC, signed the equity transfer agreement of Zhongtong Automobile Industry Group Co., Ltd. (referred to as Zhongtong Group). The 49% state-owned equity of Zhongtong Group was transferred to Shandong Jiaotong Group for free, and Zhongtong Group became an indirect wholly-owned subsidiary of Shandong Heavy Industry Group.

　　In recent years, Shandong Heavy Industry Group has successively completed the strategic reorganization of Sinotruk, Shengrui 8AT, Weihai Panthers, and Lovol Heavy Industries. The equity transfer of Zhongtong Group will help to further straighten out the property rights of Zhongtong Group, accelerate the restructuring and reorganization of Zhongtong Group, focus on its main business, divest the sideline business, and achieve high-quality development.