Company News
2023-11-03

Bosch Group invested 276 million shares in HCFA, Meanwhile, HCFA and Bosch Rexroth are drafting 120 million investments for a joint venture company



NEWS



Germany’s $100 billion worth industrial giant,Bosch Group, invested 276 million strategic investments in HCFAbecoming HCFA’s 5% of shareholder.博世集团于Founded in 1886 by Mr. Robert Bosch Stuttgart, Germany, Bosch Group achieved revenue of $646.6 billion in 2022, becoming the world’s biggest car components provider, mainly including car and intelligent transportation technologies, industrial technologies, consumer goods, industries in energy and building technologies.HCFA is headquartered in Quzhou city, Zhejiang province, specializes in R&D, manufacturing, sales and integration of applications of industrial automation products, and the company is listed in Shanghai Stock Exchange (SSE).Meanwhile, HCFA and Bosch Group plans to cooperate firmly, to serve Chinese industrial automation market with cost-effective product portfolios of automation and electrical control.Being the Germany’s leading automation and electrical control solution provider, Bosch Group entered China’s market in 1978.
Three parties formally signed the equity transfer agreement and the strategic cooperation agreement on November 2.The contents of the agreements are as follows:
Equity Transfer Agreement :Bosch Group invested $276 million strategic investment in HCFA,becoming HCFA’s 5% shareholder.
Strategic Cooperation Agreement:HCFA and Bosch Rexroth, each contributing 50% and other 50% of the total capital of 120 million CNY, planning to set up a joint venture company in Shanghai (Preparation). The joint venture company will be mainly engaging in research and development, manufacturing, providing automation and electrification solutions, and related products and services.

HCFA and Bosch Rexroth formally signed the relevant agreement on November 2, 2023


Led by a highly competitive local management team, deeply committing to the industrial automation,HCFA technology already become a technology driven industrial automation solutions provider. With its fast responding to the market needs and efficient manufacturing ability, its product portfolio is expanding continuously, especially in the servo market. In China’s market, Zhejiang HCFA technology stands out with its comparably high market share.


Mr. Wangxiangbin, chairman of the board remarked:
 
Based on the common innovative thinking and concept, HCFA and Bosch Rexroth will integrate the advantage and complement resources, be committed to becoming ecological partner in the value chain of industrial automation and creating better life with our product and service.


Mr. Wang Xiangbin, Chairman of HCFA, and Mr. Thomas Fechner, Director of the Executive Committee of Bosch Rexroth and Head of the Industrial Automation Business Unit (from right to left).


Mr. Thomas, member of Management Board of Bosch Rexroth, responsible for the Factory Automation business made the comment: 
 
合资公司将成为中国自动化市场的有力参与者。The joint venture will become a strong player in Chinese automation market.共Customer will benefit from the strengths of the two brands (HCFA and Bosch Rexroth) for the more comprehensive product portfolio,technology and better price.Moreover, the close partnership will also contribute to the sustained development of the two companies in automation industry.


China’s industrial control automation market is the one of the largest worldwide. Encouraged by the policy of manufacturing upgrading and digital transformation, the potential of the market remains strong, especially the fast-growing emerging industry such as photovoltaic and lithium.The newly established joint venture plans to build a complete automation product portfolio as well as flexible conveyor system products, which is fully committed to meeting the needs of Chinese customers for responsiveness and product price/performance ratio.


On the marketing side, the new joint venture will be making full use of resource advantages and carry out the localization of sales network and service network. The establishment of the joint venture is still subject to the approval of regulatory institutions, including the antitrust authorities.

禾川科技工业自动化全套解决方案