Cenntro Electric Group Expands Global Production Capacity with Acquisition of Advanced Manufacturing Facility in China
May 13 2022 - 6:06PM
Business Wire
Production Capacity of 50,000 Vehicles Annually
Once 474,000 Square Foot Facility Becomes Fully Operational
Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or the
“Company”), a leading EV technology company with advanced,
market-validated electric commercial vehicles, today announced the
acquisition of a new manufacturing facility in Changxing, Huzhou
City, China, for a purchase price of approximately $19.5 million.
The new 474,000 square foot facility will allow Cenntro to expand
its production capacity.
The facility, built in 2018, is expected to provide Cenntro with
advanced manufacturing capabilities. In addition to expanding
capacity, the new site is expected to enable Cenntro to obtain ISO
9000 certification. The new facility will support the production of
a new Metro® series and have an expected capacity of 50,000
vehicles annually once fully operational. The facility is expected
to begin trial production in the third quarter of 2022.
“This is a critical acquisition for Cenntro. The new facility
will allow us to expand and respond to the growing demand for our
products, especially as we begin distributing into new markets,”
said Peter Wang, Chairman and CEO.
About Cenntro Electric Group Ltd.
Cenntro Electric Group Ltd. (or “Cenntro”) (NASDAQ: CENN) is a
leading designer and manufacturer of electric light and medium-duty
commercial vehicles. Cenntro’s purpose-built ECVs are designed to
serve a variety of organizations in support of city services,
last-mile delivery and other commercial applications. Cenntro plans
to lead the transformation in the automotive industry through
scalable, decentralized production, and smart driving solutions
empowered by the Cenntro iChassis. As of December 31, 2021, Cenntro
has sold or put into service more than 3,700 vehicles in over 25
countries across North America, Europe and Asia. For more
information, please visit Cenntro’s website at:
http://www.cenntroauto.com.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include all statements that are not historical facts.
Such statements may be, but need not be, identified by words such
as "may,'' "believe,'' "anticipate,'' "could,'' "should,''
"intend,'' "plan,'' "will,'' "aim(s),'' "can,'' "would,''
"expect(s),'' "estimate(s),'' "project(s),'' "forecast(s)'',
"positioned,'' "potential,'' "goal,'' "strategy,'' "outlook'' and
similar expressions. Examples of forward-looking statements
include, among other things, statements regarding assembly and
distribution capabilities, decentralized production and fully
digitalized autonomous driving solutions. All such forward-looking
statements are based on management's current beliefs, expectations
and assumptions, and are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from
the results expressed or implied in this communication. Among the
key factors that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements
are the following: our limited operating history and historical
losses from operations; our ability to develop and manufacture ECVs
of sufficient quality, on schedule and on a large scale is still
evolving; our ability to introduce new models; potential delays in
launching and ramping up production of our new ECV models; our
reliance on our channel partners to market, sell and service (and
in certain cases, assemble and/or homologate) our vehicles; the
impacts of the COVID-19 pandemic on our operating results, in
particular due to the increase in shipping costs and shortages of
shipping containers and raw materials; our reliance on third party
manufacturing partners and suppliers for substantially all of our
vehicle kits and components, respectively, for our new vehicles;
our material weakness in our internal control over financial
reporting; risks associated with our global operations and
expansion, including unfavorable regulatory, political, legal,
economic, tax and labor conditions; changes in China’s economic,
political or social conditions or government policies; and changes
in U.S. and international trade policies, particularly with regard
to China. For additional risks and uncertainties that could impact
Cenntro’s forward-looking statements, please see the disclosures
contained in Cenntro's public filings with the Securities and
Exchange Commission, including "Risk Factors" in Cenntro’s Annual
Report on Form 20-F for the year ended December 31, 2021 filed with
the Securities and Exchange Commission on April 25, 2022 and which
may be viewed at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20220513005529/en/
Investor Relations Contact: Chris Tyson MZ North America
CENN@mzgroup.us 949-491-8235 Company Contact:
PR@cenntroauto.com IR@cenntroauto.com
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