A Spanish company is joining the growing trend of component suppliers opening factories in China.
CIE Automotive is to invest EUR3m in the factory, which will employ 100 people and open in the first half of next year.
According to the Basque news website eitb24.com, the new 2,400 square-metre factory, owned outright by the Azkoitia-based group, will be located near Shanghai.
CIE will use the new site to stamp and sub-assemble automotive components,
The supplier’s nine-month operating profits, reported by just-auto on 27 October, soared 54% to EUR 47.3m – fuelled by strong demand from international markets.
Revenues increased 19% to EUR 656m.
Rising demand from emerging markets in Brazil, Czech Republic and Mexico along with operational efficiencies, helped boost the bottom line, the company said.
The Basque industry group employs 6,000 workers of which 37% are located abroad.