There has recently been encouraging news regarding the company's  international strategic partnership. On June 17, GSP and SINOMACH Precision Industry Co., Ltd. (hereinafter referred to as "SINOMACH "), a  listed Chinese company, signed a strategic cooperation agreement under which the two parties will utilize all of their individual strengths to work together to develop a new generation of motor bearing products for new energy vehicles, supply high-speed precision bearings for new energy vehicle motors, and expand the development space for such vehicles.

Zhou Jiaru, chairman of GSP, Zhou Longsheng, president, Zhu Feng, secretary of the party committee and chairman of the board of directors of SINOMACH Precision, and Jiang Wei, deputy secretary of the party committee and general manager have attended the signing ceremony. Zhou  Longsheng and Jiang Wei signed the strategic agreement on behalf of both sides.

A powerful combination of two listed companies

GSP and SINOMACH are both domestic listed enterprises and co-formulators of wheel bearing industry standards.

GSP, which was established in 1985, is a national auto parts export base firm and one of the top 500 companies in China's machinery sector. Its stock code is 605088. The business has more than 30 years of experience in the auto parts industry, and its current product lines primarily include isovulus universal joints, drive shaft assemblies, wheel hub units, shock absorbers, and other product series. It is one of the few auto parts suppliers in China that can satisfy customers' needs for one-stop shopping for their parts. More than 120 countries and regions are covered by the company's global marketing network, and in the early years, it sequentially formed local operating teams in nations including Mexico, Germany, and the US. The corporation has also finished building warehouse infrastructure in numerous nations around the world and increased investment in hardware facilities in recent years. With  significant client stickiness, it forms a win-win business synergy with customers and has industry-leading global comprehensive service capabilities.

At present, the company's products have provided supply services for many  large foreign auto parts chains including Advanced Auto Parts, Autozone,  O'reilly and so on. In terms of new energy vehicle supporting, it has already had business cooperation with new car-making forces such as the Huawei M5 model of Jinkang Cyricus and WM Motor. The growth rate of the vehicle supporting business last year was as high as 139.4%, gradually forming a coordinated development of after-sales and OEM vehicle supporting business.

SINOMACH was established in 2001 with a stock code 002046. The company belongs to the world's top 500 enterprises, China Machinery Industry Group,  the first enterprise in China's top 100 machinery industry. The business focuses on the field of precision manufacturing, in the high-precision, high-reliability bearings and high-speed and efficient superhard material products and related parts research and development and manufacturing, testing and testing has a strong strength. The  business involves aerospace, automobile and rail transit, energy and  environmental protection, shipbuilding and weapons and other important  industries of the national economy, and the market covers more than 80  countries and regions around the world. 

"The  cooperation between GSP and SINOMACH can be described as a strong  combination and complementary advantages, GSP has a rich manufacturing  foundation for bearing products, and has a production and marketing  system and matching capabilities of 'global marketing network plus  global warehouse network system and plus big data accurate prediction  and intelligent scheduling." In the field of precision manufacturing of  bearings, SINOMACH is a leading enterprise and has leading technology.  Zhou Jiaru said of the background of the cooperation between the two  sides, "This is another in-depth exploration of GSP in the field of  automotive new energy products after cooperating with JD Logistics in  the field of global supply chain."

Jointly empower the new energy vehicle market

According  to the statistics of China Bearing Industry Association, China's  bearing market size is about 30 billion US dollars, accounting for a  quarter of the world and it is the world's largest bearing market.  According to data, in 2020, the world's eight foreign-funded bearing  groups almost monopolized the high-end bearing market, with a share of  up to 70.7%, and the domestic high-end bearing field urgently needed  domestic replacement to ensure the security of the core component supply  chain.

According to the agreement signed by the two sides, GSP will make use of the fast and efficient domestic and foreign marketing network layout, the advantages of auto parts products, professional project management capabilities, and perfect products serving for the global auto parts market. SINOMACH will make use of the technical advantages of its subsidiary Luoyang Bearing Research Institute, give full play to the strong technical advantages in the research and development and manufacturing, testing and testing of high-precision bearings and superhard material products and related parts. Besides, it will cooperate with GSP in R&D and manufacturing to provide high-precision and high-reliability motor bearings for customers at home and abroad.

Zhou Jiaru said that GSP will improve the product digital intelligence capabilities, market and customer management capabilities as the company's "six core capabilities" construction goals, around the automotive chassis parts high-performance, intelligent, electronic and other technology trends, the company has accelerated the development of new products in recent years. It is believed that through the cooperation with SINOMACH, we will jointly manufacture competitive new energy vehicle motor bearing products, which will not only achieve win-win cooperation between the two sides at the sales end and the manufacturing end, but also play their core advantages in the way of "joint going to sea", and the call for "localization" in the field of high-end bearings will jointly empower the new energy automobile market and promote the development of China's auto parts industry.