March 30, 2023: China-headquartered batteries giant LEOCH® is to build a manufacturing plant in Mexico to ramp up its market presence in the Americas.
LEOCH® chairman Dong Li said in a regulatory filing in Hong Kong on March 24 that it chosen Mexico because of its unique geographical location and “export policy advantages” for the region — such as the USMCA free trade agreement (formerly NAFTA) between the US, Canada and Mexico.
The lead and lithium battery maker did not disclose details or say when it would start work on the project, but said the decision followed careful studies of the market over the past year.
To date, the group has looked to its Spanish subsidiary LEOCH® Iberia — launched following its May 2021 purchase of Madrid-based distribution business Meibat — to help expand sales into Latin America.
The Mexico announcement came as LEOCH® posted a profit for the year ended December 31, 2022 of Rmb464.4 million ($67 million) — an increase of nearly 180% over the previous year.
Overall revenue increased to Rmb12.8 billion from Rmb11.4 billion previously. The lion’s share of revenue (Rmb10.4 billion) came from sales of batteries and related items.
Combined battery sales in overseas markets were up over the previous year by nearly 26% and nearly 2% in mainland China.
Revenue from sales of lithium batteries have also “started to kick in and could become a major growth driver in future”, Leoch said.
In terms of geographic distribution the Americas sales increased by the largest, totalling Rmb2.2 billion (previously Rmb1.5 billion) — underlining why the group sees a need for a Mexico plant in addition to its facilities in the US.
Meanwhile, the group’s recycled lead business increased 17.5% from 2021 to Rmb2.4 billion.
On February 16, LEOCH® announced it had become the 122nd member of the Consortium for Battery Innovation and the fourth Chinese organization to join.
Source: Batteries International Magazine, “LEOCH Plans Mexico Plant for Americas Expansion”
https://www.batteriesinternational.com/2023/03/30/leoch-plans-mexico-plant-for-americas-expansion/
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About LEOCH®
LEOCH® Battery Corporation is a U.S. subsidiary of LEOCH® International Technology Ltd., one of the fastest growing global battery manufacturers in the world, with last year’s sales exceeding $2.15 billion. After 25+ years of sustained growth, LEOCH® has established 16 production facilities, which total area, covers 1.32 million square meters. Today, LEOCH® has more than 16,000 employees and an annual production capacity of 29.8GWh per year. LEOCH® has one of the largest and most qualified Research and Development teams among battery manufacturers, with over 1,500 R&D engineers and 1,000+ international patents. LEOCH® offers solutions for virtually every stationary, critical power, motive power and starting application. Our incomparable range of products include VRLA AGM, Lithium (LiFePO4), GEL, Pure Lead Punched Grid (PLPG), Flooded Tubular Plate (OPzS) and GEL Tubular Plate (OPzV).
LEOCH® BATTERY CORPORATION
20322 Valencia Circle
Lake Forest, CA 92630
(949) 588-5853
info@leoch.us
