HONG KONG -- State-owned Chinese conglomerate Citic will take a roughly 11% stake in FDG Electric Vehicles, shelling out 463 million Hong Kong dollars ($60.8 million) to become the second-largest shareholder in the producer of lithium-ion batteries.
The money will help pay for a HK$1.4 billion plant expansion by FDG in the Zhejiang Province city of Hangzhou -- a step toward launching mass production of electric buses in the first half of 2016. The Hong Kong-based company will also fund the project with cash reserves and bank lending.
Citic unit DCH Holdings owns a network of auto dealers in China and Hong Kong. FDG apparently hopes that the partnership will help expand its sales channels for electric buses.