Beijing West Smart Mobility Zhangjiakou Automotive Electronics (BWSM), a Chinese business that supplies auto parts to both domestic and international car makers, has secured 2 billion yuan ($279.3 million) in a Series A round of financing, the firm announced on Tuesday.
The Series A round was led by Zhangjiakou Financial Holding Group, a state-owned company led by the local government of Zhangjiakou City in northern China’s Hebei Province. Several other investment firms participated in the deal, such as China-focused private equity firm HOPU Investments and Shenzhen Investment Holdings, a state capital investor.
The new investment followed the formation of BWSM last year, as an investment joint venture (JV) backed by its largest indirect shareholder Zhangjiakou Financial Holding Group, to acquire a 55.45% equity interest in BeijingWest Industries (BWI).
The acquisition, completed in September 2022, saw BWSM take on the controlling stake in BWI, a Chinese firm that operates nine production plants, seven technology R&D centres, and three driving test tracks with almost 5,000 employees worldwide.
“The new financing will help improve BWI’s financial position and provide the firm with ample financial support to its next stage of business expansion and global growth,” said BWI in an official statement.
Now owned by BWSM, Beijing-headquartered BWI operates as a chassis supplier designing and manufacturing brake and suspension systems for the global vehicle market.
It supplies products to over 50 car brands ranging from the world’s luxury carmakers like Lamborghini, Ferrari, and Porsche AG to emerging electric vehicle (EV) companies such as Xpeng and Nio in China, according to the company website.
The firm was built on Norstar Founders Group, a previously Hong Kong-listed auto parts company with a history dating back to 1994. In 2009, BWI entered into a purchase agreement to acquire the brake and suspension division of UK-based Delphi Technologies, alongside relevant manufacturing facilities and technical centres located in countries including the UK, Mexico, Poland, France, India, China, and the US for approximately $81 million.