China's Lingyun to Build Two Car Parts Plants in Morocco(Yicai) Feb. 18 -- Lingyun Industrial said it plans to construct two auto parts factories in Morrocco to expand on the European and North African markets and better meet the needs of overseas customers.
Lingyun will build vehicle pipes and body structural parts factories, the Hebei province-based firm announced late yesterday. The latter will be a joint venture production base with Chinese aluminum products maker Haomei New Materials, it added.
The auto pipes project will target carmakers and parts suppliers, including Tesla, Volvo, Plastic Omnium Auto Inergy, Stellantis, and Magna International, Lingyun noted, adding that it will have a registered capital of EUR7.6 million (USD8 million).
The body structural parts project, with a registered capital of CNY100 million (USD13.8 million), will produce battery housings, high-strength parts via roll-forming, and other components, Lingyun said. Its target customers include Stellantis, BMW, Mercedes-Benz, Renault, Ford Motor, Volkswagen, and Tesla, it added.
Lingyun will hold a 51 percent stake in the body structural parts factory, with Haomei New Materials owning the rest, it noted, adding that it also plans to invest in building production capacity for raw material aluminum profiles.
After the two plants become operational, they will cooperate with Lingyun's European units to develop the market and deliver products, the company said, without disclosing further details, including the investment amount, production capacity, and construction schedule.
The tie-up with Haomei New Materials can reduce the raw material costs of the JV plant, stabilize the raw material supply, and ensure supply chain security, with the two firms sharing the investment and financing risks coming with overseas projects, Lingyun pointed out.
Shares of Lingyun [SHA: 600480] jumped 2.4 percent to CNY15.52 (USD2.14) apiece as of 11.23 a.m. in Shanghai today, with the stock climbing toward its June 2015 record high of CNY16.78. Haomei New Materials [SHE: 002988] rose 1.3 percent to CNY23.50 a share in Shenzhen.
Editor: Martin Kadiev
