Bosch Rexroth and Zhuhai Enpower Electric Co., based in Zhuhai, China, plan to establish a joint venture for the development and sales of off-highway electrification products and applications - mainly for the Chinese market. Bosch Rexroth will take the industrial lead.
Corresponding agreements were signed on 12 September 2023. Both sides have agreed not to disclose details of the agreement. The establishment of the joint venture is still subject to the approval of various bodies, including the antitrust authorities.
"The electrification of mobile machinery is an important future topic for Bosch Rexroth. This joint venture is a logical step to strengthen our off-highway electrification business in China," says Dr Steffen Haack, CEO of Bosch Rexroth.
In recent years, the construction equipment industry has also accelerated its transformation in light of the continuous attention to environmental protection in China and worldwide, promoting the continuous development of construction equipment vehicles towards electrification, lightweight construction and connectivity. "Now we are adding technically complementary and competitively priced solutions to our eLION product portfolio, offering our customers in China efficiency, productivity and reliability at the same time," comments Matthias Aberle, head of the Mobile Hydraulics business unit at Bosch Rexroth.
The demand for off-highway vehicles with alternative drives is growing rapidly, and there is huge potential for the market worldwide, as well as for further developments. "In particular, the off-highway electrification market in China has been growing rapidly since 2020. Now is the right time to expand our specific offering for customers in this attractive region," says Fowai Lau, responsible for Bosch Rexroth's business in China and East Asia.
Enpower is one of the largest players in the field of research and development as well as production of drive systems for vehicles with alternative drives. Its products are suitable for a wide range of applications in alternative drive vehicles, hybrid vehicles, commercial vehicles, etc. and can also be used in certain segments of the off-highway market. The company is listed on the Shenzhen Stock Exchange.
"Our products have high efficiency, high power density and competitive prices, among others. In cooperation with Bosch Rexroth, we aim to exploit the strategic interests of both parties and win over existing and new customers in the off-highway market," said Jiang Guibin, chairman of Zhuhai Enpower Electric.
"Bosch Rexroth is a leading brand in the mobile hydraulics industry and Enpower focuses on alternative drive vehicles. We expect this joint venture to have positive effects in many areas, especially for the market and the customers. Chinese customers can benefit from a broad product portfolio with a good price-performance ratio," says Dr Li Hongyu, board member and vice chairman of Enpower.
By combining the strengths of the two future partners, the product portfolio will include electrical and electronic components, software as well as transmissions. The joint venture will be headquartered in Shanghai and will establish its own sales and service network.