A signing ceremony between Shanxi Donghui New Energy Vehicle Research Co and Japan's e-Gle Co takes place at the Shanxi Transformation and Comprehensive Reform Demonstration Zone, Dec 28. [Photo/Xinhua]

Shanxi Donghui New Energy Vehicle Research Co has recently reached a partnership with e-Gle Co, a Japanese firm, in building a hub motor production project in Shanxi province.

The Sino-Japanese project with a total investment of 480 million yuan ($71 million) covers an area of 33.33 hectares and will be located at the Shanxi Transformation and Comprehensive Reform Demonstration Zone, acting as a foundation for the zone to develop the new energy vehicle sector and related industries.

It will take three years to complete construction of the production facility. A total of 200,000 hub motors per year will be produced after the facility is put into service. It’s estimated that the project will generate 1.5 billion yuan in annual revenue and 300 million yuan in profits.