(Yicai Global) July 26 -- LianChuang Electronic Technology, a Chinese maker of optical parts, intends to invest up to USD10.9 million to build a factory in Mexico with a local partner to sell products, including advanced driver-assistance systems, to North American clients.

LianChuang will join hands with Prodensa Servicios De Consultoria through its unit LCE Optics, based in the United States, to construct the plant, the Nanchang-headquartered firm said in a statement yesterday, without disclosing more financial details about the deal.

However, it said that the collaboration will be based on Mexico's IMMEX Shelter Program, which means that LCE Optics does not need to register a project company in Mexico as its local partner can provide the factory with the necessary qualifications. The US unit will form a team to manage the project and provide it with machinery, raw materials and technologies to build and run the plant.

The factory will focus on emerging demand in North America to increase the parent's market share of optical components in the continent, per the Chinese manufacturer of touchscreens and camera lenses. LianChuang's revenue from optical parts used in cars surged more than five times last year from 2021, surpassing other segments in growth, according to the annual report.

The Chinese company counts several premium automotive brands abroad, including North America, as its clients, an executive said on the Shenzhen bourse's investor platform in May.

However, the latest expansion failed to buoy LianChuang' share price [SHE: 002036] as it dropped 6.7 percent to CNY11.10 (USD1.60) as of 1.53 p.m.

Editor: Emmi Laine