(Yicai Global) March 13 -- Anjie Technology plans to build a new production base in Mexico for USD50 million to cut output and shipping costs and expand into overseas markets, the Chinese maker of precision parts and electronic gear said today.

Anjie intends to set up a subsidiary called AJ Mexico to run the project, the Suzhou-based company said. The move will help Anjie meet demand in the new energy vehicle and consumer electronics industries, and is in line with the firm’s long-term development strategy, it added.

The USD50 million will be used to build and operation the base, including but not limited to fixed asset investment such as acquiring land and building plants, as well as initial working capital, Anjie said, without disclose the source of the funds.

Established in 1999, Anjie has branches in Singapore and the United States and it set up a production base in Thailand in early 2005. Its new plant for US new energy vehicle customers is in Texas, Anjie said two days ago, adding that the factory is expected to gradually come on stream in the second quarter.

Shares of Anjie [SHE: 002635] rose 0.4 percent to close at CNY14.06 (USD2.05) each today. The wider Shanghai market climbed 1.2 percent.

Editor: Tom Litting