(Yicai Global) March 29 -- Shares in Ningbo Xusheng Group soared as much as 8.4 percent today after the Chinese maker of precision aluminum alloy components for automobiles said it will spend USD276 million to establish five overseas subsidiaries so as to facilitate the construction of its factory in Mexico and help the company expand its footprint abroad.

Xusheng’s stock price [SHA:603305] closed up 5.6 percent today at CNY38.89 (USD5.65). Earlier in the day it hit CNY39.93.

Xusheng will form five wholly-owned subsidiaries in Hong Kong, the US and Mexico to advance the building of its plant in Mexico, the Ningbo, eastern Zhejiang province-based company said yesterday. No details of the investment amount, the products, capacity or construction timetable were given.

The Mexican facility will enable the company to increase its presence in North America, seize opportunities in the global automobile industry and provide its overseas clients with a one-stop service including locally made products and quick response times, it said.

Xusheng, which counts two of the world’s biggest and fastest-growing electric carmakers among its clients, supplies the precision aluminum alloy parts that are used in the drive, control, suspension, and battery systems of NEVs.

Thanks to surging demand, Xusheng’s net profit jumped 69.7 percent last year from the year before to CNY701 million (USD101.8 million) while revenue soared 47.3 percent to CNY4.5 billion (USD653.4 million), according to the company’s 2022 earnings report released earlier this month.

Editor: Kim Taylor