Zhejiang Shibao Company has submitted a voluntary announcement to the Hong Kong Stock Exchange (HKSE), on which it is listed, highlighting a new global sourcing agreement for steering gears with Daimler AG. The statement, signed on 14 October, indicates that Zhejiang Shibao is the nominated global steering supplier for Daimler trucks and buses.
Significance: The global supply order for steering gears from Chinese supplier Zhejiang Shibao is a breakthrough agreement for the Zhejiang-based supplier. However, in the statement to the HKSE, the company warns that that the volume of Daimler orders is dependent on market demand, indicating that truckmaker has not designated a required volume. Therefore, this indicates a level of uncertainty about the value of the deal. Zhejiang Shibao is also listed on the Shenzhen stock exchange. On the company's website, it states that it supplies commercial vehicle companies such as Kinglong Bus, Foton, Dongfeng Motor, and FAW Group, as well as passenger-car companies Chery and Geely and the Iranian Saipa Automotive Group.
