YANGZHOU, CHINA (June 18, 1:15 p.m. ET) — Chinese plastic components manufacturer Yapp Automotive Parts Co. Ltd. plans to open a new production facility in Mladá Boleslav, Czech Republic, according to a news release from Czech state agency CzechInvest.
The planned factory is expected to cost at least 252 million Czech koruna ($12.4 million) and Yapp Automotive will create 80 new jobs at the plant. The plant, which will be the company's first production facility in Europe, will be operated by its local subsidiary Yapp Czech Automotive Systems.
The plant in Mladá Boleslav will make plastic fuel tanks. Yapp Automotive currently has a 50 percent share of the Chinese plastic fuel tank market, according to data released by the company.
Set up in December 1988 and based in Yangzhou, Yapp Automotive operates 10 plastic car component production facilities in China and one in India. The company supplies carmakers including Chery, First Automobile Works, Changan Ford Mazda, Shanghai General Motors and Shanghai Volkswagen.
Czech car manufacturer Škoda, a fully-owned subsidiary of Germany's Volkswagen Group, operates a car plant in Mladá Boleslav and is likely to cooperate with the Chinese automotive parts company. By 2018, the Czech car business aims to increase the output capacity of its Mladá Boleslav facility to at least 1.5 million passenger vehicles per year. In 2011, Škoda sold a total of 875,000 units, up nearly 15 percent over 762,000 a year earlier.