(Yicai) Dec. 19 -- Zhejiang Yinlun Machinery, a leading Chinese producer of heating and cooling systems, said it has become the designated supplier of air conditioner box units for a US electric vehicle maker.

Yinlun's plant in Mexico will supply the units over five years, with the deal likely worth USD41.8 million, the Taizhou-based firm announced late yesterday. It will begin shipping the products next September, it noted, without disclosing the client's name due to a confidentiality agreement. 

In October 2021, Yinlun said it would invest CNY270 million (USD37.8 million) to build a factory in Monterrey, Mexico to make EV heat management systems mainly for clients in North America.

After bringing the new factory on stream in the first half of this year, Yinlun invested a further CNY325 million to boost its production capacity, the company said in July. The plant’s revenue will likely reach CNY1.7 billion (USD238.3 million) in 2025, it added.

Yinlun's Shanghai plant has supplied Tesla's local Gigafactory with heat management parts for new energy vehicles since 2020.

Shares of Yinlun [SHE: 002126] ended 2 percent lower at CNY18.02(USD2.53) apiece today. The wider Shanghai market ended little changed.

Editor: Martin Kadiev