(Yicai Global) Feb. 28 -- Jiangsu Pacific Precision Forging plans to invest about CNY450 million (USD64.9 million) to build a new energy vehicle parts plant in Thailand as the Chinese supplier of automotive and other precision forging gears looks to sidestep trade barrier risks and meet the needs of overseas clients.
Expected to be completed in five years, the new plant will be based in Pinthong Industrial Park in Rayong province, Pacific Precision Forging said in a statement late yesterday. It will register and form a wholly-owned project company to take charge of the plant’s investment, construction and operation.
The plant will make various kinds of vehicle gears, forging parts and assembly products, the Taizhou-based company said, without specifying product capacities.
The move comes in response to new developments in the international trade environment, as well as to meet the requirements of overseas customers to speed up the construction of factories abroad, the firm said. It will also reduce the potential adverse impact of changes in the international environment on Pacific Precision Forging’s overseas business, the firm added.
Thailand has geographical advantage as it located in the center of the Association of Southeast Asian Nations, the firm noted, adding that the country has strong internal demand and favorable investment policies. That will allow the products made at the plant to enter other ASEAN markets and also effectively respond to tax barriers in North American markets.
As an industry leader, Pacific Precision Forging is highly recognized by domestic and overseas leading vehicle makers and their powertrain suppliers, according to the company’s website. Its precision forging gear clients include Volkswagen, General Motors, Ford Motor, Mercedes-Benz, Audi, BMW, and Toyota Motor.
Shares of Pacific Precision Forging [SHE: 300258] closed up 1 percent at CNY12.14 (USD1.80) each today.
Editor: Peter Thomas