(Yicai Global) Feb. 17 -- Daye Garden Machinery unveiled plans to invest USD55 million building a new production base in Mexico to help the Chinese maker of garden power tools cope with possible trade risks.

Daye Mexico will buy a plot of land in a still unknown location in Mexico to build workshops, the Ningbo-based company announced late yesterday, without disclosing which type of products will be made as well as the capacity of the new plant. Construction is expected to last two years, it added.

Daye Garden mainly makes lawnmowers, grass trimmers, brush cutters, snow sweepers, and related accessories, with an annual capacity of about 10 million units.

Daye Garden’s revenue from exports accounted for about 90 percent of the firm’s total operating income in 2021, with Walmart, The Home Depot, and Briggs & Stratton as its main clients in the North American market, according to its annual financial report for that year.

Shares of Daye Garden [SHE: 300879] closed up 0.3 percent at CNY18.20 (USD2.66) in Shenzhen today, after earlier gaining by as much as 2 percent. The benchmark ChiNext Index slumped 2.5 percent.

Daye Mexico is registered in Salinas Victoria in Mexico’s Nuevo Leon state, according to yesterday’s statement.

Editor: Futura Costaglione