(Yicai Global) May 14 -- Chinese car wheel manufacturer Zhejiang Jinfei Kaida Wheel Co. and its two wholly-owned units will buy all shares in Thailand-based Vossen Manufacture Co. as part of efforts to expand into the Southeast Asian market.

The firm has signed a letter of intent regarding the takeover with Vossen's shareholders, the Jinhua-based firm said in a statement.

The deal will help the company deal with existing and future trade frictions and make it more competitive, Jinfei Kaida said. The firm plans to build wheel production lines for cars and motorcycles in Thailand as part of an effort to gain a foothold in the Southeast Asian market.

The final transaction price will be determined in the official equity transfer agreement to be signed by the relevant parties, based on an asset appraisal report.

Vossen is yet to put any production facilities into operation and its main asset is a plot of industrial land covering an area of over 66,000 square meters. It is located in the Thai-Chinese Rayong Industrial Zone, which has been jointly developed by China's Holley Group Co. and Thailand's Amata Group. Firms working in the zone receive a number of preferential investment policies.

Editor: William Clegg