(JW Insights) May 17 -- Tenglong Auto Parts(腾龙汽车零部件), a Chinese maker of automotive cooling equipment, intends to invest up to $20 million to build a new plant in Malaysia to serve overseas clients, reported Yicai Global on May 15.

The manufacturer will set up a wholly-owned subsidiary in Selangor to be in charge of constructing the facility that will make thermal management systems and related parts, the firm said in a statement recently without disclosing more details about the timetable or output.

This is not the first plant the Changzhou-based company built in Malaysia as the firm already operates a MYR8.5 million ($1.9 million) plant in the Southeast Asian country. However, the latest plan involves more upstream products along the industry chain.

The goal is to form facilities abroad to serve European and North American customers, Tenglong added.

Tenglong is one of China's leading suppliers of aluminum pipes and heat pump valves used in air conditioning and heat exchangers. Its overseas clients include major auto makers such as Honda Motor, Volvos, Ford Motor, Volkswagen, Stellantis, and Mazda Motor, according to the report from Yicai Global.

(Gao J)