(Yicai Global) Feb. 20 -- China's  Zhenghai Magnetic Material, a maker of rare earth-based magnetic  materials and components, will establish a wholly-owned subsidiary in  Detroit, US, to serve local auto and consumer electronics clients.

Zhenghai will invest USD1 million in the  new unit, which has registered capital of USD30,000, the Yantai-based  firm said in a statement.  

The firm aims to become the world's  leading research and development center and producer of high-performance  neodymium iron boron permanent magnetic materials. Many of its auto and  CE clients are based in the US and have high demand for such products,  according to the statement. 

A local subsidiary in the country can  help the firm to respond faster to clients' demands, as well as to  discover and maintain new clients, it added. 

Editor: William Clegg