PR89088

SHANGHAI, April 20, 2021 /PRNewswire=KYODO JBN/ --

- Highly Group Expands New Energy Vehicle Thermal Management Business

On April 18, 2021, the global headquarters of Highly Marelli Holdings Co.,

Ltd., a subsidiary of Highly Group, started operations and a new energy vehicle

thermal management system launch conference was held in Pudong, Shanghai.

Highly, a subsidiary of Shanghai Electric Group, issued A and B shares on the

Shanghai Stock Exchange of China in 1992 and 1993, respectively. It is the

world's leading R&D and manufacturer of core components for white goods and new

energy vehicles, and cooling and heating related products. There are three

major industry sectors: "compressors and core components, auto parts, and

cooling and heating products", with products covering hundreds of millions of

households in 165 countries and regions around the world.

As the world's largest manufacturer of non-self-supporting household

air-conditioning compressors, Highly has been seeking breakthroughs in

industrial development in recent years, and has successively entered businesses

such as electric air-conditioning compressors for new energy vehicles and auto

parts castings. Based on the four-core competitiveness that Highly has formed

over the years: technology research and development capabilities in the

electromechanical field, large-scale lean manufacturing management

capabilities, large-scale operating cost control capabilities, B2B marketing

capabilities. The company has strategically put the auto parts business as a

key development industry sector and has been actively seeking entry

opportunities.

On August 29, 2019, Highly and Marelli signed the "Memorandum of Intent for

Cooperation". Marelli is one of the world's leading global independent

suppliers in the automotive industry, with approximately 60,000 employees

worldwide, 170 institutions and R&D centers in Asia, America, Europe and

Africa, and sales revenue of 13.6 billion euros in 2019. On September 4, 2020,

Highly and Marelli formally signed an auto parts joint venture project. This

project includes Marelli's divestiture and reorganization of its automotive

air-conditioning compressors and air-conditioning system assets and businesses,

and established Marelli Hong Kong as the main body to integrate the target

assets and business. Highly acquired 60% of Marelli Hong Kong. After the

completion of the project, the joint venture company was renamed Highly Marelli

Holdings Co., Ltd. On January 28, 2021, Highly and Marelli completed the

delivery of the business.

The Highly Marelli joint venture project is not the first cooperation between

the two companies. In August 2019, Marelli also acquired a 25% stake in

Shanghai Highly New Energy Technology Co., Ltd., a subsidiary of Highly, and

reached a cooperation between the two parties in the electric air-conditioning

compressor business of new energy vehicles.

After its establishment, Highly Marelli's operating headquarters are located in

Shanghai, China and Saitama, Japan. At present, the company has 28 factories

and 5 R&D centers and technical service institutions in 9 countries including

China, Japan, the United States, Thailand, Malaysia, India, South Korea, the

United Kingdom, and Spain. Highly Marelli will devote itself to the research

and development, manufacturing and sales of world-class automotive air

conditioning systems and new energy vehicle thermal management systems, making

full use of the advantages of both parent companies in the field of auto parts,

exerting synergies, and expanding the global market. While becoming a

world-class Cabin Comfort system solution provider, it has transformed into the

world's leading supplier of automotive thermal management systems.

At the launching ceremony of the global headquarters, Highly Marelli also

released the latest thermal management system products for new energy vehicles.

The system uses heat pump technology as the core and integrates Highly's

ultra-high efficiency scroll electric compressor and Marelli air-conditioning

system technology to greatly improve the energy efficiency ratio of

air-conditioning and greatly increase the mileage of new energy vehicles in

winter. The system has a Multi-Function Receiver with unique control functions,

which enables the heat pump system to have cooling, heating, dehumidification,

and defrosting functions, and achieves a high degree of integration, which

improves the vehicle's loadability. The scope of the system's working

environment is expanded and can be used in the global market environment, while

the system security is greatly improved. Relying on the excellent performance

of this system product, Highly Marelli has already contacted several leading

auto OEMs in Europe, America and Japan and major new Chinese automakers to

promote system matching projects.

China is the world's largest automobile market, and new energy vehicles account

for the world's leading share, containing huge market opportunities. In the

next phase, Highly Marelli will integrate global resources, invest more

resources in the Chinese market, establish a global R&D center and build

factories for key components in China, and use the world's first-class product

quality and leading technology to better serve China's new energy vehicle

thermal management system market.

Through the joint venture with Marelli, Highly will have a global layout of

automotive air-conditioning compressors and air-conditioning systems, as well

as world-class R&D capabilities and customer resources, and become the world's

leading supplier of automotive air-conditioning compressors and

air-conditioning systems. Highly's electric vehicle air-conditioning compressor

business will also have a synergistic effect with Marelli heat pump systems and

other businesses to provide complete environmental system solutions for new

energy vehicles, and promote Highly's rapid expansion and strength in the new

energy auto parts field, build Highly's "second main business", and realize

Highly's three major transformation strategies: development from the white

goods to auto parts, from the core components to system integration, and from

domestic market-oriented to international layout.

SOURCE  Highly Marelli Holdings Co., Ltd.