(Yicai) Jan. 9 -- Shares of Xusheng Group surged by their daily trading limit after the Chinese maker of aluminum alloy auto components said its factory in Mexico, which is to become operational this year, has received an order from a well-known North American traditional carmaker.

Xusheng [SHA: 603305] closed 10 percent higher at CNY14.05 (USD1.92) a share today. The broader Shanghai market fell 0.6 percent.

Xusheng will bag no less than CNY1.9 billion (USD259 million) from this order over the next five years, the Ningbo-based company said late yesterday. The Mexican plant was designated to supply seven types of parts for the unidentified client's electric vehicle development platform, including transmission cases and motor housings, it added.

The factory is expected to start mass producing the parts from the fourth quarter of next year, with a life cycle of no less than five years, Xusheng noted, without disclosing the client's name due to a confidentiality agreement.

In September 2023, Xusheng started the construction of its USD276 million Mexican plant in Saltillo, its largest overseas production base, the plant is expected to start production early this year.

Xusheng focuses on producing precision aluminum alloy components used in new energy vehicles' drive, control, suspension, and battery systems. In 2023, it said in a financial report that its customers include the largest and fastest-growing NEV manufacturers worldwide, while its overseas income accounted for 56 percent of its annual revenue.

Editor: Martin Kadiev