According to EqualOcean, Zhejiang Rongtai(浙江荣泰), a mica component supplier, recently announced its intention to establish a subsidiary in Mexico.
The move aims to enhance the company's overseas supply system for new energy vehicles, deepen its international market presence, and increase collaboration with global automotive manufacturers. Through its wholly-owned subsidiary, Singapore Rongtai, the company plans to invest in and construct a project in Mexico for the production of 500,000 sets of new energy vehicle components annually, with an estimated total investment of approximately USD 10.88 million.
Established in 2003, Zhejiang Rongtai primarily engages in the research, development, production, and sale of various high-temperature resistant mica insulation products. Its product range includes thermal runaway protection insulation components for new energy vehicles, flame-retardant insulation components for small household appliances, and cable flame-retardant insulation tape. As of 2023, revenue from thermal runaway protection insulation components for new energy vehicles reached CNY 575 million, representing a year-on-year growth of 22.39% and accounting for 71.81% of total operating income.
The company's domestic and international business layout is steadily advancing. In 2023, domestic sales revenue amounted to CNY 475 million, up 18.99% year-on-year, while overseas business revenue reached CNY 325 million, an increase of 21.37% year-on-year. Currently, the company's clientele includes globally renowned automotive brands such as Tesla, Volkswagen, BMW, Mercedes-Benz, and Volvo, as well as leading battery manufacturer CATL(宁德时代), and well-known home appliance companies such as Midea(美的) and Panasonic, and international or domestic renowned wire and cable enterprises such as Nexans, Baosheng(宝胜), and Far East Cable(远东电缆).
EqualOcean understands that Zhejiang Rongtai's growth objectives are primarily focused on the field of new energy vehicles. In 2023, the company announced the investment in a project in Hunan Province with an annual production capacity of 15,000 tons of mica products for new energy use. The project is currently underway, with plans to complete factory construction and decoration by December 2024, conduct equipment installation and commissioning for trial production by June 2025, and officially commence production by July 2025.
In terms of overseas expansion, the company established Singapore Rongtai and Vietnam Rongtai in 2022 for overseas production, manufacturing, and international trade. Singapore Rongtai provides support services to overseas customers, expanding the company's sales channels, while Vietnam Rongtai serves as an overseas production base for new energy vehicle components, which is already operational.
Looking ahead, Zhejiang Rongtai stated that it will adapt to customer demand by introducing new materials, products, and technologies, continuously meeting customer needs through interactive research and development during periods of rapid industry growth. Additionally, it will explore more application scenarios in fields such as new energy vehicles and energy storage.
Furthermore, with the backdrop of the new normal of economic development, the demand for electrification, intelligentization, and cost reduction and efficiency improvement will present new requirements for insulation materials. The company aims to seize the opportunities in the electrical insulation market brought about by industrial market upgrades.