SANY Heavy Industry and Shenglong Metallurgical Establish Strategic Partnership to Drive Green Transformation in Steel Industry

CHANGSHA,China,May 19,2023 -- SANY Heavy Industry ("SANY",SSE: 600031),a leading global heavy machinery manufacturer,recently held a signing ceremony during which the company reached a strategic partnership with Guangxi Shenglong Metallurgical Co Ltd (Shenglong Metallurgical). Liang Linhe,Chairman of SANY Heavy Truck,and Lin Nengjing,CEO of Shenglong Metallurgy,signed the strategic cooperation agreement on behalf of their respective companies.

Shenglong Metallurgical CEO Lin Nengjing and Sany Heavy Truck Business Group Chairman Liang Linhe attended and jointly signed a strategic cooperation agreement. Heralding a new phase of the pair's cooperation,the event also marked the completion of an RMB 90-million (USD 12 million) procurement deal which saw SANY deliver thirty-five EV550 electric tractors,fifty electric dump trucks,and a battery swapping station to Shenglong Metallurgical – a milestone that propelled their collaboration to unprecedented heights.

As one of the largest iron and steel manufacturers,Shenglong Metallurgy is one of China's Top 500 enterprises and the world's Top 50 steelmakers,with its annual crude steel production ranking 35th around the globe. In recent years,the company is accelerating its green initiative to facilitate China's push towards its carbon neutrality and peak target,placing a stronger emphasis on sustainability and low-carbon development as it is beefing up its green logistics capacity.

The delivery of SANY's electric equipment greatly bolstered Shenglong Metallurgy's endeavor to decarbonize its logistical network,which hit a new record as the largest procurement deal for electric logistics vehicles that Guangxing's steel industry has ever seen.

Speaking of his excitement for the deepened collaboration with SANY,Ke Xueli,Chairman of Shenglong Metallurgy,highlighted the shared goal of the two companies to further electrify the logical scene of Fangchenggang City,the hometown of the steel giant,jointly empowering the city's and national steel industry to drive towards green transformation while achieving high-quality development.

Chairman Xiang Wenbo of SANY stressed the significance of this cooperation in aligning with China's decarbonization targets,as well as its role in promoting green manufacturing and sustainable development. This came after SANY was honored by Forbes China as one of the "Top 50 Sustainable Industrial Enterprises 2022" and recognized as a green development pioneer by the industry for its remarkable sustainable efforts.

SANY's latest achievements in green production,product innovation,low-carbon manufacturing,supply chain sustainability,and employee and community empowerment are also featured in 2023 ESG Inspiration Cases of Forbes China,a corporate ESG listing that give accolades to companies that made exceptional accomplishments in environmental stewardship,social responsibility,and corporate governance.

SANY Heavy Industry's factory in Changsha has also been named one of the Lighthouse factories by the World Economic Forum (WEF),making it the second heavy industry facility owned by SANY to receive this prestigious title. In response to the market headwinds,the factory adopts an automated production model powered by AI technological and Industrial IoTs in an effort to achieve intelligent manufacturing (IM) transformation. The new model allows the company to establish a digitized manufacturing system for heavy equipment that increases its labor productivity by almost 100 percent. The result is a 123 percent boost in production capacity and a 29 percent reduction in manufacturing cost per unit.

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About SANY

SANY Group's core businesses are design,manufacturing,sales,and support of heavy-duty engineering equipment. SANY Heavy Industry is China's largest and the world's 3rd-largest engineering machinery manufacturer,the efforts to add a new electric product portfolio makes SANY stand out in today's digital world and is also part of its sustainable solutions.