Foreign firms reinvest profits in Taicang as confidence grows

Magna International's Taicang subsidiary. [Photo/WeChat account: tcfbgw]

Foreign companies in Taicang are stepping up reinvestment, signaling growing confidence in the city's business environment and industrial ecosystem.

In the first quarter of this year, profit reinvestment in Taicang exceeded $100 million, up 84.6 percent year-on-year, with foreign investment accounting for 47.4 percent of the total.

Profit reinvestment in Taicang covered multiple sectors, including high-end equipment manufacturing, automotive components, and new materials.

One of the latest examples came on March 30, when the Magna Mirrors project was signed in Taicang High-Tech Industrial Development Zone. The investment marks the third capital increase by Magna International's Taicang subsidiary since it settled in the city in 2011, and also its largest expansion so far.

Hu Mingming, vice-president of operations for Asia at Magna Mirrors & Lighting, said Taicang's location, well-developed industrial supporting network, and favorable business environment were key reasons behind the company's continued investment. Currently, 18 of the world's top 100 auto parts suppliers have established operations in Taicang, forming a strong industrial chain for the automotive sector.

Another long-term investor is Brose Group, which has repeatedly expanded its footprint in Taicang since 2014. The company has established three companies in succession, focusing on door systems, seating systems, and electric drive technologies.

Brose Group's Taicang factory. [Photo/WeChat account: tcfbgw]

In April last year, Brose's new energy vehicle intelligent cockpit and door panel system project opened in Taicang. Once reaching full production capacity, the company's three factories in the city are expected to generate annual sales revenue of 12 billion yuan ($1.76 billion). Taicang has now become Brose Group's largest manufacturing base in the Asia-Pacific region.

Brose Group's Taicang factory. [Photo/WeChat account: tcfbgw]

The strong growth in reinvestment reflects not only the stable returns foreign enterprises are gaining in Taicang, but also the city's continued efforts to improve its business climate, expand opening-up, and foster a competitive industrial ecosystem.