Geely invests $150 million to open two subsidiaries

Geely Holdings Group announced yesterday that it signed a cooperative assignment with the companies Geely Haoqing and Geely Merrie in Zhejiang, whose shares are controlled by Li Shufu, Chairman of Geely Holding Group. According to the assignment, the three parts will invest a total of 75 million Yuan together to build two new auto parts subsidiaries, named Hunan Geely Auto Parts Co., Ltd and Lanzhou Geely Auto Parts Co., Ltd, respectively, aiming to promote Geely’s development, research, sales and marketing capacities in mainland China.

Geely Haoqing will hold 53.19 percent of Hunan Geely and Centurion Industries will retain 46.81 percent, meanwhile Geely Merrie and Centurion, a holding company registered in the British Virgin Islands that is fully owned by Geely, will hold 53.19 and 46.81 percent of Lanzhou Geely, respectively.

Geely opened the two subsidiaries to better serve the market demand for fuel economy models in Chinese markets and its long-term goal is to boost production line for the group.