In a move to follow its customer BMW, a Chinese automotive molder is eyeing a major investment in Mexico.
Jiangnan MPT Co. Ltd., based in Jiangyin, China, and traded on the Shenzhen Stock Exchange, announced in July that it plans to fork out $100 million to establish a footprint in Mexico.
The new wholly owned subsidiary, Minghua de Mexico in San Luis Potosi, will manufacture plastic components, plated parts and molds. The company also listed a few more specific examples such as doors, windows and spoilers.
The company said the move is to follow existing customer BMW's expansion in overseas markets.
“It will form a closer partnership with BMW and in the meantime expand our overseas presence,” the company announced.
“The investment demonstrates that our products and management have reached top levels in the international arena. It will build our brand and lay a solid foundation for future global expansion,” the company added, “the additional revenue source will also strengthen the company's sustained profitability.”
The investment is pending shareholders' approval on Aug. 11.
Also in July, the company forecasted that for the first half of 2015, its net profit will jump 45-55 percent year-on-year to reach a range of 203.1 million to 217.1 million yuan ($32.7 million to $35 million).
Jiangnan MPT claims to be China's leading supplier of automotive exterior trim systems with annual production capacity of 3 million bumpers. It employs more than 2,000 in China.