(Yicai Global) March 20 -- Shares of Bethel Automotive Safety Systems rose after the Chinese maker of parts for car breaking systems said its Mexican unit had secured orders worth CNY3.1 billion (USD449.8 million) from a well-known North American automaker.
Bethel [SHA: 603596] closed up 3.4 percent at CNY66.40 (USD9.64) a share, after surging by as much as 6 percent earlier today.
WBTL de Saltillo will supply several types of parts, including cast aluminum-made front and rear steering knuckles, to the buyer’s vehicle development platform project from 2025 when the new model is scheduled to start mass production, its Wuhu-based parent company said on March 17, citing the deal the two parties had signed two days prior.
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 North America market, according to Bethel’s website.
The deal shows the client's recognition of the Mexican unit's expertise, Bethel noted, adding that it will also help the company expand its capacity to make lightweight parts products and further develop cooperation with leading global automakers.
WBTL de Saltillo's plant is expected to be the exclusive supplier, Bethel said, adding that the value of the contract is estimated based on the expectation that the life span of the new vehicle is five years, annual production will be about 300,000 units, and the predetermined unit price of the parts. The exact value will depend on volumes delivered, it said.
The contract’s value also does not include shipping costs, which the client will bear, Bethel said.
Editor: Futura Costaglione