Chinese Plastics Enterprise Signs Joint Ventures in Mexico and the U.S.
Published By : 23 Jul 2015 | Published By : QYRESEARCH
A Shanghai based plastics company, which was eyeing the North American market is establishing base in the U.S. and Mexico.
Shanghai Yongli Belting Co. Ltd, which is into production of industrial conveyors stated last month that it is making an investment of US$2.5 million for a 20% stake of Seoyon Top Metal Mexico SA de CV, which is into manufacture of mold maker and automotive mold maker located in Apodaca, near Monterrey.
The remaining shares of the company belong to South Korea’s Top Metal Works Co. Ltd, as stated by Yongli in an announcement.
The Mexico subsidiary of the company was recently founded and established in December. The new subsidiary of the company will manufacture plastic parts and molds, which will be used for the exterior and interior trim for automotives. Yongli, which is a publicly traded company made a statement, that the Mexico venture is aimed to mainly supply Kia and Hyundai automotive parts in that country.
In another major move, Yongli has entered into a partnership with a Michigan based enterprise. As per the agreement, it will be in the ratio of 60:40, which Yongli has signed with Grand Rapids, which is Michigan based Mol Belting Systems Inc. The company is into the manufacture and distribution of lightweight conveyor belting items in Portage, Indiana.
As per the partnership, Yongli will be investing US$600,000 in the joint venture, which has been named Yongli America LLC.
As per a local news report published by nwtimes.com, in the current scenario, Mol Belting imports belts from China which are later distributed in the United States. The joint venture will begin from a warehouse and distribution center, but will eventually have production in Portage.
Yongli further commented, it hopes the move will arouse its brand awareness and reinforce its customer base in the United States.