Ningbo Huaxiang acquires automotive mold maker
Chinese automotive supplier Ningbo Huaxiang Electronic Co. is snatching up molder and mold maker Shanghai Global Precision Mould & Plastics Co.
Global makes precision molds and injection molded parts for automotive, irrigation, mobile phone, connector and power tool industries.
In the first 10 months of 2015, Global generated sales of 264 million yuan, which was evenly split between the export and domestic Chinese markets. Net profit for the period totaled 20 million yuan.
The company runs 130 injection molding machines. Major automotive customers include TRW and Magna International.
Ningbo Huaxiang said it expects its main business -- automotive parts manufacturing -- will benefit from Global's r&d capabilities.
To fund the deal, Ningbo Huaxiang is raising cash through the private sale of securities.