(Yicai Global) June 20 -- Bethel Automotive Safety Systems plans to invest USD165 million to increase output at its Mexican plant as orders from its US clients swell, but the Chinese car braking systems manufacturer has changed its mind about going public in Switzerland.
Bethel will inject USD165 million into its Mexican unit WBTL de Saltillo through investments and loans to increase capacity at its factory in the Alianza Industrial Park, Saltillo city, the Wuhu, eastern Anhui province-based firm said yesterday.
The new production line will have an annual output of 5 million sets of cast aluminum front and rear steering knuckles, as well as other products such as controlling arms, subframes and brake calipers. The total investment amount was not mentioned but Bethel said financing would be raised from its own funds, bank loans and other means.
The expansion follows the bagging of a CNY3.1 billion (USD449.8 million) order from a major US automaker in March for several types of parts, including front and rear steering knuckles.
Bethel did not provide the buyer’s name, citing a confidentiality agreement, but did say the carmaker is an existing client. General Motors, Stellantis and Ford Motor number among its clients in the North American market, according to the firm’s website.
Bethel also backed out of its plan for a secondary listing on the SIX Swiss Exchange, it said in a separate statement yesterday, citing the financing environment on the mainland and overseas as well as the company’s actual financial and operating status.
In February, Bethel had said it was mulling a secondary listing in Zurich to boost growth, expand its global footprint and open up fundraising channels in the international capital markets.
Bethel’s share price [SHA:603596] was trading up 3.2 percent at CNY80.19 (USD11.17) as of 1.15 p.m. China time today.
Editor: Kim Taylor