Li Fu Gao, a Japanese automotive fastener manufacturer, plans to set up a plant in the Chinese mainland

Nifco, the Japanese automotive fastener manufacturer, will spend 1 billion yen (about US$12.15 million) to build a new plant in Hubei, China.

This will be the sixth plant Livao set up in China, and it will be the first Livago factory set up in China. The Li & Fung (Hong Kong) branch holds 100% of the plant. The factory will be mainly used to produce plastic fasteners, cup holders and other components. It is expected that the new plant will begin production in June 2011.

It is understood that Li & Fung has set up a factory in Guangdong Province to supply products to Japanese car manufacturers in Wuhan.

According to relevant reports, Honda and Nissan will expand their automobile output value in Hubei and Hunan, so Li Fu Gao chose to set up a new plant in Hubei in order to meet these buyers' demand for auto parts. The establishment of the new plant will bring approximately 8 billion yen (about 97 million U.S. dollars) in revenue for the company.

In another development, Li & Fung Company will also expand its factory in Shanghai to achieve its goal of 10% annual growth rate.