TOKYO, NNA - Japanese automobile and industrial machinery parts maker Muro Corp. will establish a wholly-owned subsidiary in China to manufacture and market automobile parts, capitalizing on the growing demand for the products there.
Muro’s board of directors on Wednesday approved the establishment of the new company, Muro Tech Xiaogan Hubei Co., in the National High-Tech Industry Development Zone in Xiaogan, in the central province of Hubei, Muro said in a statement.
The subsidiary, Muro’s first in China, will be established in November with a capital of $7.36 million and is scheduled to start operations in April 2021, the statement said without disclosing the amount of investment and details of a projected plant. It will also export and import automobile parts. A Muro executive officer told NNA that the company aims to start construction of the plant early in 2020.
Demand for automobile parts is expected to grow further in China, the statement said. “We have decided to establish the subsidiary with the aims of responding to the demand and further expanding our business overseas,” it added. The executive officer said the subsidiary would focus on manufacturing automobile parts for local auto-making joint ventures with Japanese partners.
In Asia, Muro already has wholly-owned manufacturing subsidiaries in Vietnam and Indonesia as well as a sales affiliate in Thailand. It also has wholly-owned manufacturing units in the United States and Canada.