(Yicai Global) May 15 -- Tenglong Auto Parts, a Chinese maker of automotive cooling equipment that counts Ford Motor and Volkswagen as some of its customers, intends to invest up to USD20 million to build a new plant in Malaysia to serve overseas clients.

The manufacturer will set up a wholly-owned subsidiary in Selangor to be in charge of constructing the facility that will make thermal management systems and related parts, the Jiangsu province-based firm said in a statement recently without disclosing more details about the timetable or output.

This is not the first plant the Changzhou-based company built in Malaysia as the firm already operates a MYR8.5 million (USD1.9 million) plant in the Southeast Asian country. However, the latest plan involves more upstream products along the industry chain.

The goal is to form facilities abroad to serve European and North American customers, Tenglong added.

Tenglong is one of China's leading suppliers of aluminum pipes and heat pump valves used in air conditioning and heat exchangers. Its notable overseas clients include Honda Motor, Volvos, Ford Motor, Volkswagen, Stellantis, and Mazda Motor, according to the 2022 annual report.

The market initially had a tepid response to the news as Tenglong's stock price [SHA:603158] fluctuated in a narrow range in morning session, but it eventually rose to end the day close to the intraday high of CNY6.99 (USD1), up 1.2 percent.

Editor: Emmi Laine