Eyeing the North American market, a Shanghai plastics company is establishing a presence in the United States and Mexico.
Industrial conveyor maker Shanghai Yongli Belting Co. Ltd. said last month that it is investing $2.5 million to acquire a 20 percent stake of Seoyon Top Metal Mexico SA de CV, an automotive molder and mold maker in Apodaca, near Monterrey.
The remaining shares belong to South Korea's Top Metal Works Co. Ltd., Yongli said in an announcement.
The Mexico subsidiary was newly founded in December and is expected to make molds and plastics parts for automotive interior and exterior trim. Yongli, which is publicly traded, said the Mexico venture will mainly supply Hyundai and Kia transplants in that country.
Yongli also has formed a 60:40 joint venture with Grand Rapids, Mich.-based Mol Belting Systems Inc. to make and distribute lightweight conveyor belting products in Portage, Indiana.
Yongli is investing $600,000 in that JV, which is called Yongli America LLC.
According to a local news report from nwitimes.com, Mol Belting currently imports belts from China for distribution in the United States. The JV will begin with a warehouse and distribution center but will eventually start manufacturing in Portage.
Yongli said it hopes the new move will increase its brand awareness and strengthen its customer base in the United States.