(Yicai Global) Oct. 27 -- Carthane, a Chinese supplier of car parts to General Motors and Ford Motor, intends to build a factory in Mexico to better serve clients.

The firm's units in Hong Kong and the United States will initially invest USD1 million to set up a project company in the North American country to establish the plant that will mainly make shock-absorbing components, the Shanghai-based manufacturer said in a statement yesterday. 

The first investment will mainly be used to rent workshops, purchase production equipment, and manufacture product molds. Carthane plans to allocate more funds based on project progress. Building the plant should help Carthane improve its supply efficiency while expanding overseas, the firm said, without disclosing details about the planned output or clients.

Carthane mainly produces shock-absorbing parts made from polyurethane. The products are used both in gas-powered and new energy vehicles, according to the company’s 2021 annual report. Carthane has several well-known customers in North America, including Fiat Chrysler Automobiles.

Carthane’s stock price [SHA: 603037] rose 3.3 percent to CNY16.59 (USD2.30) as of noon.

Editor: Emmi Laine, Xiao Yi