(Yicai Global) April 17 -- A unit under Yantai Zhenghai Magnetic Material Co. plans to build a Shanghai factory to produce drive systems for new-energy vehicles and set up a South Korean unit to better serve overseas customers.
Shanghai Dajun Technologies Inc. will pump CNY350 million (USD55.7 million) cash into the plant, Shandong-based Zhenghai said in a statement yesterday. It expects the factory, based in Pujiang High-Tech Campus and scheduled for completion within 18 months, to generate annual income of CNY1.8 billion in 2020 and CNY3 billion in 2022. Workers there will design, test, make and sell electronic control systems and related parts.
The firm plans to develop a new-energy business centered around Dajun Tech, create up- and downstream sectors and build a headquarters for its new-energy vehicle power and energy management systems, the company added, saying it would also establish a research and development center for the industry.
Zhenghai will also invest KRW1 billion (USD936,610) in cash to set up a South Korean subsidiary in order to better serve customers there, it said in a separate announcement the same day. The peninsula nation is home to many of the company’s electronics and automotive customers, who have high demands for performance from magnetic materials, the firm added.