Guangdong Hongte Technology Co., Ltd., or simply Hongte Technology, popularly engaged in manufacturing precision die casting of aluminium alloys, has unveiled its sweeping expansion blueprint with €78 million investment funds that it plans to raise. The finances are planned to be deployed strategically across four areas, which include the construction of a Thai auto parts production facility (Phase I), a state-of-the-art research and development centre at headquarters, a technical upgrade at the Zhaoqing plant, and boosting working capital to navigate market shifts with greater agility.
But why now amid the volatile global economy? It is only because of the recovery of the automotive industry that prompts Hongte Technology to fast-track its technological transformation and enhance production capabilities while also building working capital to stay ahead of the curve.
The major highlight of all the projects is the Thailand facility, with 10,000 tonnes of annual aluminium alloy die-cast capacity, which also reflects a broader trend of Chinese manufacturers branching out across Asia. The plant will be located in the Zhengda Guangxi Construction Industry Park in the Thai province of Rayong.
There’s also a strategic motive at play. With 50 per cent of its business dependent on exports, Hongte’s aluminium plants in China face growing uncertainty due to international trade tensions. An alternative facility in Thailand will help the company respond better to the complex global trade situation, while being close to key Southeast Asian markets.
Back home, the Zhaoqing production facility is set to undergo technical transformation to become robust in optimising the production process and improving efficiency through the deployment of automation.
Although Hongte is turning to external capital, it has a strong financial foundation with an operating income of €134.95 million in 2024, up from €128.4 million in 2023. The company also plans to upgrade software and hardware at the plants, set up in-house laboratories, and recruit skilled personnel.
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