Yongmaotai Automotive Technology, a Chinese manufacturer of aluminium alloy auto parts, has announced plans to invest CNY 450 million (USD 62.8 million) in a new factory in Mexico. The move aims to help its European and US clients navigate uncertainties in global trade policies.
According to a statement released yesterday by the Shanghai-based firm, its two Singaporean subsidiaries will jointly establish a Mexican entity to finance, construct, and manage the facility. The project is expected to take approximately two years to complete, though further details were not disclosed.
Yongmaotai Automotive Technology said the Mexico investment is aimed at mitigating the negative impact of shifting tariff policies on the supply chains of its European and US customers. The move is also intended to reinforce relationships with international clients, enhance market stability, and boost the adoption of its aluminium components in the automotive sector.
Earlier in April, the company announced a USD 50 million investment to build a turbocharger housing facility in Indonesia, with an annual capacity of around 5 million units. The objective behind that project mirrors the rationale for the new Mexican plant.
Yongmaotai Automotive Technology primarily manufactures aluminium alloy components. It counts major global players, such as General Motors, Volkswagen Group, BorgWarner, Continental Automotive Systems’ Brake division, and Robert Bosch, or their Chinese joint ventures, among its clients.
According to the company’s latest annual report, overseas sales totalled CNY 225 million (USD 31.4 million) last year, representing approximately 5.5 per cent of its overall revenue. Shares of Yongmaotai Auto [SHA: 605208] closed 1 per cent lower today at CNY 13.27 (USD 1.85), while the benchmark Shanghai Composite Index slipped 0.1 per cent.
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