Select Language:
Shares of Rongtai Electric Material soared following the announcement that the company plans to invest $77 million to establish a manufacturing facility in Thailand. The new factory aims to better serve international customers by increasing production of insulation components for electric vehicles and robotic parts.
The company’s stock jumped over 7% in early trading on the news, though gains narrowed as major market indices declined, closing up about 1.1% at 98.02 Chinese yuan (roughly $13.90). The Shanghai Composite Index fell 0.4%.
Rongtai, a leading provider of insulation materials for new energy vehicles, revealed that the Thailand plant is expected to produce 14,000 tons of mica paper and 4,500 tons of mica products annually, along with seven million sets of robotic components. The facility is slated to be operational by the end of 2026.
This expansion will bolster Rongtai’s global manufacturing and supply capabilities, strengthen partnerships with high-profile clients, and foster greater customer loyalty, according to the company’s statement.
Although specific project details and client identities remain undisclosed, the annual report for 2023 indicates that Rongtai supplies high-temperature-resistant mica insulation materials to major international EV manufacturers such as Tesla, Volkswagen, BMW, and Mercedes-Benz.
Additionally, the company is expanding its footprint in the robotics sector. In June, Rongtai completed acquiring a 51% stake in Shanghai-based Dizi Precision Machinery, a developer of planetary roller screw products for humanoid robots. This strategic move allows Rongtai to quickly enter the emerging market for precision transmission components used in humanoid robotics.
ChatGPT
Perplexity
Gemini AI
Grok AI
