July 15, 2016 Updated 7/15/2016
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Conch Profiles and Science Co. Ltd. Conch officials at an investment signing event.
China’s leading profiles manufacturer Conch Profiles and Science Co. Ltd. has walked away from the negotiation table for its attempted acquisition of Chery Automotive Co. Ltd.’s electronic vehicle subsidiary. Instead, the company is investing in its core extrusion business.
The acquisition fell through because Chery’s EV unit has not acquired permits to manufacture EVs, Conch said in a July 12 announcement.
In the meanwhile, the Wuhu, Anhui-based extruder said it has signed an agreement to build a production base in northeast China. The new plant in Changchun is expected to have 40,000 metric tons of annual capacity, with total investment of 150 million yuan ($ 22.4 million).
Conch said the northeast region, due to its climate and consumer preference, sees a high adaption rate of plastic profiles in doors and windows. The new plant can increase its competitiveness in the local market and reduce logistics costs.
Conch’s parent company added that it is the group’s first large investment in northeast China, in response to Beijing’s strategic initiative to revive that region. The group expects the facility to become a model project for its other subsidiaries.
