Shanghai Prime Machinery Co. Ltd. (02345.HK) said its newly acquired subsidiary, Dutch toolmaker Koninklijke Nedschroef Holding B.V., will expand its plant in Kunshan, the Hong Kong Economic Journal reported Monday.
The move is intended to tap a fast-growing market for high-end passenger cars in mainland China which is projected expand at 10 percent a year in the next five years.
The company expects demand to come from the local units of its foreign clients including BMW, Audi, Mercedes-Benz and Volkswagen, the report said, citing Nedschroef chairman Mathias Hüttenrauch.
They will now be able to place their orders for vehicle parts more conveniently rather than source them overseas, Hüttenrauch said.
The Kunshan plant is expected to reach sales of 100 million euros (US$135.34 million) in the next five years compared 12 million euros in sales last year.
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