(Yicai) Aug. 15 -- Zhaowei Machinery and Electronics, which supplies humanoid robot parts to Tesla, said it will invest as much as USD100 million to build a factory in Thailand to better meet overseas demand and hedge against shifting international trade and tariff risks.

The new plant is still in the planning phase, the Shenzhen-based company announced late yesterday, without disclosing any further details, including the exact products to be made at the factory.

Zhaowei filed a secondary listing prospectus with the Hong Kong Stock Exchange in June in which the company said part of the proceeds would be used to expand its production capacity.

The firm may build new plants in Southeast Asia, Europe, and other strategically important regions aiming to enhance responsiveness to international clients, optimize global supply chain efficiency, reduce logistics costs, and shorten delivery cycles, according to the prospectus.

After jumping by as much as 2.4 percent in morning trading in Shenzhen today, Zhaowei’s shares [SHE: 003021] ended 1.6 percent higher at CNY118.94 (USD16.56) apiece. The wider market gained by the same. Zhaowei’s stock has increased by 81 percent so far this year.

Zhaowei's overseas sales jumped 35 percent to CNY212 million (USD29.5 million) last year, accounting for 14 percent of its total revenue, up from 10 percent in 2023, buoyed by more orders from overseas smart auto and humanoid robotics clients, according to its annual financial report.

The company supplies Tesla with the micro precision transmission components used in the dexterous hands of the US automaker’s humanoid robots.

Editor: Martin Kadiev