By Jason Chau
Shares of auto parts maker Minth Group jumped after the Taiwanese company announced a joint venture with Japanese peers Aisin Corporation and Toyota Tsusho to produce aluminum body frame parts in Canada.
The new joint venture, named ATM Automotive, will operate in the Canadian province of Ontario with the goal of strengthening the supply chain of aluminum auto parts in North America.
Minth's Canadian subsidiary and Aisin Corp. will each own 40% of the new entity, while Toyota Tsusho, which is part of Japan's Toyota Group, will own 20%, according to Minth's exchange filing on Tuesday.
Minth's stock rose as much as 4.0% early Wednesday in Hong Kong, reaching its highest level since January 2021, before pulling back. Shares were last 0.4% higher.
Aisin Corp. and Toyota Tsusho's shares didn't trade Wednesday as Tokyo markets were closed.
Minth specializes in producing parts as well as tools used in car production such as moulds and gauges. It has operations across major auto markets in east Asia, Europe and North America.
The company said the joint venture is important for meeting market expectations as demand for aluminum body frame parts is expected to increase with the advancements in electrification and lightweight technology.
Canada has been eyeing foreign manufacturing investments in recent months as it seeks to bolster its steel, aluminum and auto sectors amid sectoral U.S. tariffs imposed by the Trump administration.
"This strategic partnership should significantly enhance order intake from Toyota and other Japanese automakers in the region," said Citi analysts Kyle Wu and Jeff Chung in a note. They project mass production at the joint venture to begin by end-2027.
Write to Jason Chau at jason.chau@wsj.com
(END) Dow Jones Newswires
02-11-26 0023ET
