China's XCMG says agreed with Tsingshan Group to invest in $843 mln new energy project

Jan 4 (Reuters) - Xuzhou Construction Machinery Group Co Ltd (XCMG) said it has agreed with Tsingshan Holding Group Co Ltd to invest in a 5.5 billion yuan ($843 million) new energy vehicle (NEV) project in the eastern Chinese city of Xuzhou.

The project will focus on research, development, production and sales of NEVs, batteries, electric motor control systems and other auto parts, XCMG said in a statement on Sunday without detailing how much money each of the two parties will invest, or how many vehicles, batteries or parts it aims to produce.

First phase of the project will involve a 2.5 billion yuan investment with projected annual sales proceeds of 10 billion yuan, said XCMG.

China’s Tsingshan Group is the world’s biggest stainless steel maker and the biggest nickel producer in Indonesia. It has invested in Indonesia’s Morowali territory to produce battery-grade nickel chemicals.

Neither company answered Reuters’ telephone calls seeking comment.

$1 = 6.5250 yuan Reporting by Min Zhang and Tom Daly; Editing by Christopher Cushing