Power-tool maker Techtronic Industries will spend up to US$50 million to expand production capacity on the mainland by 60 per cent within three years.
The plan is in line with the company's strategy to concentrate its manufacturing operations in China, while leaving product development and design functions to its operations in the United States and Hong Kong.
Techtronic has shut down its production lines in Mexico over the past two years and relocated the capacity to China. Mainland operations now account for 90 per cent of the company's output.
The new investment will be used to build a factory in Dongguan, where it already has manufacturing and assembly facilities.
The firm posted a 63.02 per cent gain in net profit to HK$673.97 million last year. The profit results exceeded the $593.71 million consensus forecast by 17 analysts surveyed by Thomson First Call.
Earnings were lifted by a full six-month contribution from US-based Royal Appliance Manufacturing, which Techtronic acquired in April last year. The company also cited the success of its new Ridgid line of professional power tools, launched in the US last year.