Tokai Rika said on Monday it has set up an automotive parts unit in Suzhou, eastern China, jointly with Chinese and South Korean companies, Jiji Press reported.
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Due to launch operations in December, Suzhou Huachang Mechanical and Electrical Co. will manufacture parts such as key locks and switches, and supply them to Shanghai Volkswagen Automotive Co. and other European and US vehicle makers.
The company, capitalised at 330 million yen, is owned 20% by Tokai Rika, affiliated with Toyota Motor Corp. The Japanese firm is partnering with Guizhou Guihang Automotive Components Co. of China and Shinchang Electrics Co. of South Korea.
The joint company plans to build a new plant by February 2005 and aims to generate one billion yen in sales in 2005 and 1.6 billion yen in 2008. It plans to invest a total of 800 million yen by 2008, Jiji Press said.
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