(Yicai) June 13 -- Duoli Automotive Technology, a Chinese maker of automotive stamping, die casting, welding, and non-metallic materials, plans to invest CNY91.5 million (USD12.8 million) to gain control of Spanish auto parts supplier Fagor Ederlan’s subsidiary in China.

Duoli will buy a 52 percent stake in Fagor Ederlan Auto Parts Kunshan to enrich its products and acquire new domestic and foreign customers, the Suzhou-based firm announced yesterday.

The acquisition of Fagor Ederlan Auto Parts Kunshan will deepen Duoli’s cooperation with Fagor Ederlan on brand, technologies, products, research and development, and marketing, Duoli noted, adding that it will take this opportunity to fully explore the possibility of building an overseas production layout, expand its domestic and foreign customer resources, and enhance the brand influence of its products.

Fagor Ederlan Auto Parts Kunshan produces automotive suspension parts cast in aluminum alloy. It is the designated supplier of BMW and Mercedes-Benz and counts Benteler International, Zahnradfabrik Friedrichshafen, and other well-known European parts suppliers as its clients.

In the first quarter of the year, Fagor Ederlan Auto Parts Kunshan reported an operating income of CNY20.6 million (USD2.9 million) and a net profit of CNY2.5 million (USD341 million). Its net assets totaled USD207 million as of March 31.

Duoli is a long-term supplier of Chinese carmaker SAIC Motor and its joint ventures with Volkswagen and General Motors, as well as other renowned automakers, such as Tesla and BYD. Its main products include stamping dies and integrated die-casting parts for automobiles.

The company’s sales revenue from overseas markets accounted for only 4 percent of the total last year, according to its latest annual financial statement.

Duoli’s shares [SHE: 001311] closed 1.9 percent down at CNY20.03 (USD2.79) today, after opening up 1.7 percent. The Shenzhen Component Index fell 1.1 percent.

Editor: Futura Costaglione