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(Yicai Global) May 24 -- A US unit of China's Zhongding Sealing Parts Co. plans to raise CNY1.5 billion (USD235 million) in a bond issue to fund an expansion in production after Tesla Inc. named the company as a supplier.
Under their deal, Acushnet Rubber Co. will supply battery cooling products to the US electric carmaker, Anhui-based Zhongding said in a statement.
Of the funds raised, CNY800 million is earmarked to extend a plant making shock-absorptive rubber products and CNY400 million to build a temperature control fluid pipeline system. The remaining CNY300 million will be used as working capital.
Zhongding has undertaken a number of overseas acquisitions in its quest to become a global leader in sealing system technology.
In recent years, the company took over Massachusetts-based Acushnet, Kaco GmbH in Germany, and Federal Mogul Sealing Systems Inc. in France. Acushnet already produces battery cooling systems for the electric cars made by Volvo Group and Chery Jaguar Land Rover Automotive Co.
Editors: Emmi Laine, William Clegg