(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