Guangdong Hongte Technology Co., Ltd. (hereinafter referred to as “Hongte Technology”) announced that it will raise financing funds and invest the funds in the construction of the Thai auto parts production facility (Phase I), the technical redesign of the Zhaoqing production facility, the construction of the research and development center at its headquarters, and the increase in working capital.
Regarding the investment projects, Hongte Technology stated that, against the backdrop of the recovery of the automotive industry and the further intensification of international trade conflicts, the company plans to raise funds to accelerate the technological transformation of Guangdong Hongte Precision Technology Zhaoqing Co., Ltd. (hereinafter referred to as “Zhaoqing Hongte”), the construction of the R&D center at its headquarters, and the design of production sites abroad, while at the same time increasing its working capital. The company aims to adapt to new development trends in the automotive industry and meet the needs of downstream customers.
Annual production capacity of 10,000 tons of various aluminum alloy die-cast parts for the automotive industry is expected in Thailand
The “Thailand Auto Parts Production Base” (Phase I) construction project is being carried out by Hongte Technology (Thailand) Co., Ltd. (hereinafter referred to as “Thailand Hongte”), which is wholly owned by the company. The project is located in the Zhengda Guangxi Construction Industry Park in the Thai province of Rayong. Upon completion and commissioning of the project, an annual production capacity of 10,000 tons of various aluminum alloy die-cast parts for the automotive industry is expected.
Hongte Technology's two main production sites are currently located in Zhaoqing and Taishan in Guangdong Province. The export share is high, with foreign sales accounting for more than 50% of both sites. Trade conflicts between the world's major economies are therefore having a significant impact on the company's production and operations. By establishing a new production site in Thailand, the company aims to better respond to the increasingly complex international market environment, meet the needs of its regular customers, keep pace with developments in the automotive industry, and increase its competitiveness in the global market.
The technical transformation project at the Zhaoqing production site is being implemented by Zhaoqing Hongte, a wholly owned subsidiary of the company. It mainly improves product quality and production efficiency through the installation of new production equipment. The aim is to optimize the production process and increase the level of automation.
By the end of 2024, the renewal rate of Zhaoqing Hongte's machinery and equipment was only around 32%. As Hongte Technology's main production site, Zhaoqing Hongte achieved operating income of €128.4 million and €134.95 million in 2023 and 2024, respectively, continuing its growth trend.
In addition, Hongte Technology will use the funds raised to implement the construction project for its research and development center in Zhaoqing. The project includes the construction and equipping of buildings, the purchase and installation of software and hardware, the establishment of professional laboratories, and the recruitment of skilled personnel.
About Hongte Technology
Hongte Technology is mainly engaged in precision die casting of aluminum alloys and focuses on precision die castings for engines and transmissions as well as parts and structural components for vehicles with alternative drive technologies. In order to accelerate its expansion into foreign markets, Hongte Technology announced plans in April 2024 to invest in the construction of a factory in Thailand.
Source: www.yzweekly.com
