#Spain #Shanghai Electric #Nedschroef #Tarragona

Celebrating a Decade of Acquisition Success

In December 2024, Shanghai Electric commemorated the 10-year anniversary of its acquisition of Nedschroef by breaking ground on a new automotive fastener factory in Tarragona, Spain. This strategic move signifies not only a milestone for Shanghai Electric (listed as SEHK:2727 and SSE:601727) but also a bold step in strengthening its manufacturing capacity in the automotive sector.

Located in the vibrant northeastern part of Spain, the new facility aims to enhance Nedschroef's production of fastening solutions throughout Europe. This development is a pivotal aspect of Nedschroef's three-year action plan, focused on optimizing manufacturing operations and driving operational efficiency. By positioning itself more strongly within the European market, Shanghai Electric and Nedschroef are poised to meet the growing demand for automotive components with cutting-edge technology.

Since joining forces through the acquisition, Nedschroef has achieved significant growth and innovation. Over the past ten years, the company established a robust foundation in the automotive components landscape. The opening of two factories in Spain illustrates a well-strategized effort by Shanghai Electric and Nedschroef to leverage regional advantages, particularly in manufacturing capabilities and market penetration.

Moreover, Nedschroef's collaborative partnership with CP Tech—acquired seven years ago—marked a pivotal enhancement in technological capabilities. Through this synergy, the company has advanced its production of high-precision components tailored for niche applications, ranging from hypercar chassis to specialized aerospace gear mechanisms. This collaboration underscores a shared commitment between Shanghai Electric and Nedschroef to innovate in diverse fields, including automotive and aerospace industries. The recognition of CP Tech's industry certifications for low-altitude aircraft further validates their innovative ventures.

To foster sustainable growth, Shanghai Electric is creating a supportive and collaborative environment, enhancing both corporate culture and operational frameworks. They are investing in supply chain optimization by integrating capabilities from their subsidiary, Shanghai Zhenhua Bearings. This initiative aims to provide high-performance needle bearings that will significantly lower production costs at CP Tech, ultimately fostering greater efficiency and effectiveness in production.

Shanghai Electric is also focused on diversifying market opportunities. By capitalizing on its resources and partnerships in industrial software, Nedschroef aims to expand its visualization processes and tap into the civilian automotive sector more effectively. This incorporates strategic insights designed to enhance product offerings and penetrate new markets.

A notable factor of Shanghai Electric's approach is its dedication to cultivating an inclusive corporate culture. Their policies emphasize employee welfare during challenging times, showcasing a long-term commitment to creating resilient and diverse workplace environments. This commitment not only promotes employee satisfaction but also stimulates innovative thinking and collaborative spirit across all levels of the organization.

Wu Lei, Chairman of Shanghai Electric, articulated, "CP Tech, located strategically in Europe, is set to amplify collaboration across all our business segments. This synergy lays the groundwork for mutual growth and adaptability in response to global market trends and technological advancements. Together, we strive to unlock new avenues while expanding our global footprint."

With the establishment of their new Tarragona factory, Shanghai Electric and Nedschroef are gearing up to solidify their role as leaders in the production of automotive fasteners while continuing to enhance their technological prowess and market reach. This initiative marks a promising chapter in a decade-long journey of collaboration and innovation, paving the way for more groundbreaking advancements in the industry.