Huzhou's Southern Taihu Lake New District and Geely Commercial Vehicle Group reach an agreement to construct a commercial vehicle manufacturing base in the district on April 12. [Photo/hz66.com]

Chinese automobile maker Geely will construct a commercial vehicle manufacturing base in Huzhou's Southern Taihu Lake New District.

According to the agreement reached between the city and Geely Commercial Vehicle Group on April 12, the manufacturing base will be transformed from the existing plants owned by Huzhou Enchi Automobile Co Ltd.

Geely will lease the plants and equipment from the Huzhou-based auto company.

The project's establishment will expand Geely's presence and competency in the new energy vehicle sector and extend the auto industrial chain in Southern Taihu Lake New District, noted a head official from the administrative committee of Southern Taihu Lake New District.

Currently, the district accommodates a complete industrial chain of new energy vehicles and key parts, including the manufacturing of batteries, motors, and electronic controllers, as well as the research and development of lightweight materials.

Xiang Lemin, deputy mayor of Huzhou, said at the signing ceremony that the city will fully support the manufacturing base's construction.

One of the leading carmakers in China, Geely sold 2.1 million passenger and commercial vehicles in 2020.