Allied Machinery

Jul 24, 2023

(Yicai Global) July 24 -- Chinese high-precision mechanical parts maker Allied Machinery plans to build a new production base in Mexico to better serve its North American clients. Allied Machinery will set up a project company in Monterrey to invest in, build, and operate the new factory, the Hangzhou-based company announced on July 21. The first phase of the project, with an estimate investment of USD56.6 million, will have an annual production capacity of 380,000 precision parts, including 20,000 compressor parts, 10,000 engineering machinery parts, and 8,000 agricultural machinery parts, Allied Machinery added, noting that the construction period will be two years. The project will deepen the cooperation between Allied Machinery and overseas clients and help the company master the development trends in the downstream segment of the industry and client needs, the firm pointed out. Johnson Controls International, Ingersoll Rand, Carrier Global, McQuay International, and Caterpillar are among Allied Machinery’s main North American clients, according to the company’s latest annual report. After reaching the designed capacity, the project will bring Allied Machinery annual sales of USD29.7 million before taxes, it said. Its payback period will be 9.5 years, including construction. Shares of Allied Machinery [SHA: 605060] were trading down 2 percent at CNY28.20 (USD3.92) as of 1.45 p.m. today. Editor: Futura Costaglione