Geely-Volvo China HQ may be located in Shanghai

Shanghai, April 19 (Gasgoo.com) One insider said, upon the completion of Geely's acquisition of Volvo, the China headquarters will likely be located in Shanghai's Jiading District, and the China plants will be built in Shanghai's Jiagding District and Daqing city, Heilongjiang province, northeast China respectively. If all goes well, in the next two weeks, the top management team, who has participated in the acquisition, will start to appear at Room 2260, Building 7, 1365 Hongde Rd, Shanghai Jiading Industrial Zone, which happens to be the office address of the Shanghai Jili (Geely) Zhao Yuan International Investment Co., Ltd., also the real project company for Geely's acquisition of Volvo.

The insider also revealed that Geely's acquisition of Volvo actually needed registered capital of 8.1 billion yuan (about $1.2 mln) and working capital of $1.5 mln, but not the previously announced $ 1.8 mln plus $700 mln.

Business registration information shows that Shanghai Jili Zhao Yuan International Investment Co., Ltd. was registered in the industrial and commercial bureau of Shanghai's Jiading District with registered capital of 20 mln yuan and would be run by Geely's legal representative, Tong Zhiyuan who joined Geely Group right before Geely's buying Volvo and attended the signing ceremony as Geely's vice president.

A staff member of Shanghai Jili Zhao Yuan International Investment Co., Ltd also admitted in the interview that Shanghai Jili Zhao Yuan International Investment Co., Ltd would be the project company for Geely's acquisition of Volvo.

The new company was registered on Feb. 3 2010 with registered capital of 100 mln yuan, of which, the Jiading development zone contributed 60 mln yuan, holding 60% stake and Shanghai State-owned Asset Management Co. Ltd. of Jiading District contributed 40 mln yuan, holding 40% stake. Yu Jianhua, secretary of Party and labor committee of the Shanghai Jiading Industrial Zone was registered as the company's legal representative.