(Yicai Global) July 24 -- China's Fawer Automotive Parts will establish a CNY24.7 million (USD3.6 million) subsidiary in Mexico to meet Volkswagen's demand for tandem pumps.

Fawer will hold 99 percent of the equity of the new plant, located in Nuevo Leon, while its US subsidiary will have 1 percent, the Changchun-based company said in a statement yesterday.

The project will bring more international orders to Fawer and enhance its competitiveness without a big impact on its domestic operation, it said. 

Founded in 1988, Fawer supplies auto components to many Chinese carmakers, including FAW Car.

Fawer's stock price [SHE:000030] rose 2 percent this morning to CNY4.5 (70 US cents).

Editor: Emmi Laine