(1) acquire the development ability of core technologies and take the road of independent technological innovation. The automobile industry has a history of 100 years abroad. Today, although China has become the largest automobile producer in the world, the situation that manufacturing equipment and core technologies still depend on imports has not changed. The key core technologies of automobiles are generally in the hands of foreign companies. Through overseas mergers and acquisitions, we can use the development capabilities of foreign companies to quickly upgrade our technical level on the basis of their high starting point, and then build our own product and production technology development capabilities from scratch. Many technologies can be directly developed and trial-produced overseas, and then put into the market by taking advantage of domestic manufacturing advantages. Wescat's technology platform is consistent with our company's existing technology platform, and its R&D center is a world-class R&D institution at present. Including material science, equipment application, process development, computer simulation production, production quality analysis and optimization. Ability to develop parts synchronously with OEM according to OEM requirements. After the merger, it can be used by us, making our company's technology research and development ability reach the world advanced level.
(2) Improve its position in the industrial chain and improve its profitability. In China's current automobile industry chain, the market of high-end products has been occupied by foreign companies. This is not only reflected in the development and manufacturing of the whole vehicle, but also in the development and manufacturing of parts. At present, most of the high-end products of automobiles are occupied by foreign brands, even though the mid-end products of many independent brands still rely on foreign auto parts. Delphi, Wandu and other large parts manufacturers have become important profit links in the industrial chain. Taking the road of low-end duplication and price competition will have no way out in the long run. Wescast's product line is the best of its kind. Many of its products are high-end products with exclusive patented technology. After the merger, Bochum can be produced in China, which will improve the profitability of its products.
(3) Use the existing market of overseas companies. Important overseas auto parts manufacturers generally occupy a place in the automobile industry chain. These century-old shops have become important partners of well-known OEMs. They participated in the research and development of parts in the development stage of a new car, worked with OEM to shape products and provide system solutions. So its orders are stable for a long time. It has a relatively monopolistic market position. By acquiring such a company, we can immediately become a member of the supply chain, eliminating the product verification link that sometimes lasts for years. Moreover, the breadth and depth of the market are unmatched by the situation of starting from scratch.
(4) Complementary advantages to broaden product structure and enterprise value. Bochum is currently developing and producing EA888 third-generation engine block project with Volkswagen Audi of Germany. The introduction of WESCAST can accelerate the development process and improve the value of the two companies after the merger. Re-listing in the capital market can greatly improve the company's value, and financing will lay a good foundation for the company's further development.
(5) Make use of rich foreign experience in production, quality control and management. Overseas auto parts manufacturers generally have many years of manufacturing experience, and have rich experience in production management, quality control and personnel training. Its art production mode was established in the long-term practice of automobile industry from growth to prosperity. At the same time, they also have experience in coping with the pressure of reducing costs. Learning their technical means can improve the quality control and management level of domestic manufacturing enterprises. By learning their experience, we can improve our relatively extensive management methods, reduce costs and improve efficiency.