(Yicai Global) Sept. 11 -- China's Jinfei Kaida Wheel and its two units will fulfill the parent's plan that was set forth in May to acquire Thailand's auto parts maker Vossen Manufacture to extend car components production to the Southeast Asian country while averting possible China-targeted trade tariffs.
Jinfei Kaida and its two affiliates signed an equity transfer agreement regarding Vossen with equity sellers including Samsing Investment, the Zhejiang province-based wheel manufacturer said yesterday. The acquisition will help Jinfei Kaida to cope with the current and future international trade frictions and improve its competitiveness, said the firm which exports its products across the world, including the US.
An ongoing trade dispute between China and the US has cast gloomy clouds over the horizon for many Chinese firms, as US President Donald Trump has threatened the Asian country with additional tariffs on almost all of its exports to the US.
The Chinese parties will pay USD3.6 million for Vossen's equity while absorbing the USD1.2 million debt that the Bangkok-based company owes to Samsing Investment. Vossen's assets include over 66,000 square meters of industrial land at the Sino-Thai Rayong Industrial Zone in eastern Thailand but the firm has not started using the land for production yet.
The industrial zone which is jointly developed by conglomerate China Huali Group and Thailand's property developer Amata enjoys several preferential investment policies of the Thai government, including 4-year exemptions from corporate income tax and import tariffs for machinery.
Editor: Emmi Laine