Chongqing - Recently, the Southwest Production Base project of KH (Zhengjiang) Advanced Suspension Co., Ltd (KHAT) has settled at the Western (Chongqing) Science City in Chongqing High-tech Zone. 

Experiencing a three months journey from project discussions to the sealing of the contract, the Southwest Production Base project of KHAT has successfully bridged the industry gap in the domain of new energy vehicle air springs that are cost-effective, highly durable, and efficient to provide linear and angular motion and commonly used in electric vehicles.

KHAT is a national high-tech enterprise and specialized and sophisticated "Little Giant" company. It is also the only high-tech enterprise in China that can develop the whole process of passenger vehicle electronically controlled suspension system and supply system.

According to Xinhua, the "Little Giant" firms represent China's novel elites of small and medium-sized enterprises that specialize in a niche market, boast cutting-edge technologies, and show great potential.

A photo of KH (Zhengjiang) Advanced Suspension Co., Ltd., which has settled at the Western (Chongqing) Science City in Chongqing High-tech Zone (Photo/KHAT)

Supply of air suspension systems ranked first in China

Currently, KHAT's annual production capacity for air springs stands at 600,000 units. From January to May of this year, the supply of air suspension systems ranked first in China. 

With an investment totaling one billion yuan (about USD 138.66 million), KHAT is poised to establish the southwest production base within the Western (Chongqing) Science City. 

This base will encompass the construction of five automobile air spring assembly and electronic control suspension production lines. The trial production is scheduled to commence before December 31, 2023, while full-scale production of air springs is projected to hit an impressive 500,000 units per year by 2028.

Additionally, the company is actively seeking to attract upstream and downstream enterprises to cultivate a comprehensive air suspension-related industrial cluster.

"The attraction of the KHAT project fully embodies the characteristics of specialized team promotion, integrated collaboration, urban-district synergy, and platform assistance, providing valuable experience for Chongqing's investment promotion efforts," said the relevant person in charge of Chongqing Investment Promotion Bureau.

Collaboration in investment promotion to ensure resource integration

Since KHAT became a key investment target, the Chongqing Investment Promotion Bureau and the Automotive Industry Division of Chongqing Economic and Information Technology Commission jointly established a project advancement working group to excel in information coordination, company visits, and especially the coordination of resources from major manufacturers.

Collaborative efforts in investment promotion have reduced communication costs and ensured resource integration, enhancing investment promotion efficiency. 

This approach has effectively regulated the order of investment promotion, avoiding vicious competition. It only took three months to achieve the contract signing and settlement of the KHAT southwest production base project.

The landing of the KHAT project was also greatly aided by the "Industry, Technology and Finance" service platform, which provided front-end services, played a crucial role in precise and efficient connections, and facilitated connections and coordinated efforts with the B-round investor Source Code Capital, for KHAT.