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China Automotive Systems Adds Second National "Green Factory" Designation

China Automotive Systems Adds Second National "Green Factory" Designation

China Automotive Systems announced that its subsidiary Jingzhou Henglong Automotive Parts Manufacturing has been named a national-level "Green Factory" for 2025 by China's Ministry of Industry and Information Technology, marking the company's second such designation after its Dongfang Avenue plant received the same recognition in December 2023. The Ministry's Green Factory programme certifies facilities for performance in green production, energy conservation and emission reduction, and Jingzhou Henglong was named to both the national Green Factories list and the separate national Green Industrial Parks list.

 

The Dongfang Avenue plant served as the group's pilot site for green transformation, implementing measures aligned with China's 14th Five-Year Plan for Industrial Green Development and its Implementation Plan for Carbon Peaking in the Industrial Sector. Specific initiatives cited include retrofitting digital workshops, commissioning an 8 megawatt rooftop photovoltaic power system, recovering and recycling waste heat from air compressors, and reusing treated wastewater across production processes. The company said these measures reduced energy consumption across its production processes and delivered cost reductions alongside efficiency gains, though no specific quantified emissions or energy reduction figures were disclosed for either facility.

 

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With two subsidiaries now holding the designation, the company describes its overall green transformation efforts as having reached what it calls a new level, positioning the combination of the two certified facilities as setting a benchmark for green upgrading among regional manufacturing enterprises in Hubei Province, where the company is headquartered. The release frames the approach taken at Dongfang Avenue specifically as replicable and scalable, suggesting the company views the pilot site's combination of digital retrofitting, on-site renewable generation and resource recovery measures as a template it intends to extend to additional subsidiaries rather than a one-off achievement confined to a single facility.

 

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Chief executive Qizhou Wu framed the recognition as marking a new phase in which the company's green manufacturing systems are anchored by two national-level benchmark facilities, and said the company intends to use their example to drive similar green retrofitting and low-carbon upgrades across its other subsidiaries, explicitly tying that ambition to supporting China's broader national carbon peaking and carbon neutrality goals. China Automotive Systems operates 16 Sino-foreign joint ventures and wholly owned subsidiaries supplying power steering components to automakers including China FAW Group, Dongfeng Auto Group, BYD, Beiqi Foton, Chery, Stellantis and Ford Motor Company, with annual production capacity exceeding 8 million sets of steering gears, columns and hoses across its passenger and commercial vehicle product lines.

 

 

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DD

Daniel Dun

Senior Advisor

Daniel is a finance professional with experience across commodities trading, investment banking, and private credit, having worked with firms like Glencore and BTG Pactual across global markets. He has worked on carbon offset products and project finance, with a focus on sustainability and capital markets. He has also supported product management at BlockFi, helping bridge DeFi and traditional finance. Daniel holds a Master’s degree in Economics.

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