15 January 2020 Weichai Power signed strategic cooperation agreements with Germany's ARADEX AG (“ARADEX”) and Austria's VDS Holding GmbH (“VDS”) in Jinan, Shandong Province. members of Shandong provincial government and media representatives attended the signing ceremo

　According to the agreements, Weichai Power has successfully completed the acquisition of an 80% stake of ARADEX and planned to acquire a 51% stake of VDS, making Weichai Power the controlling shareholder of both companies. The fast implementation and deep integration of the two strategic restructures will effectively improve China’s key technical weaknesses in the electric motor control systems of the new energy powertrain and agricultural equipment CVT powertrain systems, and accelerate the industrialization process of Weichai Power’s new business landscape.

VDS is a technology development company specializing in the powertrain systems for vehicles. It has developed a wide range of products such as hydraulic and automatic transmissions which are widely used in tractors, loaders, municipal vehicles, new energy buses, etc. At the same time, the company has strong product design, R&D, and testing capabilities that can provide consulting services on the whole process from design scheme to prototype production.

Integrate global technology resources with an open posture, support high-quality and sustainable development with core technology. In recent years, Weichai Power has focused on the “Urgent Company Needs, High-end Technology and breaking the Industry’s Bottleneck". The company has successively strategic restructuring numbers of global high-tech enterprises around the world, to comprehensively improve the Group's strategic emerging businesses, overcome the technical weakness for both the enterprise and the industry to promote the industrialization and commercialization in China. According to the acquisitions of motor controlling system and agricultural CVT equipment, Weichai Power will strengthen its core competitive advantage on the new energy and CVT hydraulics powertrain system, which will vigorously promote the technological progress of China's high-end equipment manufacturing and new energy industry.