Chongqing – Chongqing has introduced another top auto parts maker to establish a local smart manufacturing base.

"The production base should be located where the customers are, and Chongqing is one of our main focuses," said Xu Jie, Deputy General Manager of Shandong Haoxin Group, during a roundtable exchange event in Chongqing on April 28.

The Shandong Haoxin Group, based in Shandong Province, specializes in the research, development, and manufacturing of road vehicles, non-road vehicles, rail transit systems, and components for new energy vehicles. It is ranked among the top 200 private enterprises in Shandong, a province with the second-largest number of private enterprises in China.

Previously, the Shandong Haoxin Group has established partnerships with Chongqing-based companies, including Changan Automobile and Chongqing Cummins Engine Company (CCEC).

Over 60 high-quality companies discussed development opportunities in Chongqing. (Photo/Chongqing Municipal Commission of Economy and Information Technology)

Xu noted that logistics costs are the primary factor that led the company to establish a base in Chongqing. "Currently, our main foreign market is Europe, but setting up a production line there is very costly," he said.

Shandong, located in eastern China, is far from Europe compared to Chongqing, which lies in the southwest. "As products shipped from Shandong would have to travel across much of China before reaching Europe, the process is longer and more costly," he explained. "Now, by shipping from Chongqing via the China-Europe Railway Express, we can reduce costs and enhance our global presence."

The company is currently in talks to cooperate with Bishan District in Chongqing, with plans for a production base valued at approximately one billion yuan (around $ 145 million) and covering a land area of between 130 and 260 square meters.