Rongtai’s Mexico Plant Turns Profit

Another Chinese company has made strides in overseas markets. After a period of cultivation, Rongtai Co., Ltd.’s plant in Mexico successfully turned a profit in the first half of this year, serving as a vivid example of China-Mexico economic and trade cooperation.

Recently, Rongtai released its semi-annual report for 2025, announcing that its Mexico-based subsidiary, Leon Rongtai, has officially become profitable. This achievement not only demonstrates the international operational capabilities of Chinese enterprises but also highlights the positive outcomes of China-Mexico economic and trade collaboration.

According to the financial report, Leon Rongtai achieved a net profit of 19.95 million yuan in the first half of 2025, successfully returning to profitability compared to a loss of 11.38 million yuan during the same period last year.

Its operating revenue reached 291 million yuan, a year-on-year increase of 36.1%, indicating strong growth momentum.

The turnaround at Rongtai’s Mexico plant is primarily attributed to the advantages of localized production overseas and enhanced refined management capabilities. This has not only strengthened its ability to provide supporting services for overseas clients such as Bosch and ZF but also effectively addressed uncertainties in the international trade environment.

Deepening China-Mexico Economic and Trade Cooperation

Rongtai’s success in Mexico is a testament to the continuously deepening economic and trade relations between China and Mexico. China has been Mexico’s second-largest global trading partner for many years, while Mexico remains China’s second-largest trading partner in Latin America.

Thanks to its geographical advantage of connecting North and South America and policy benefits such as zero tariffs under the USMCA, Mexico is becoming a hotspot for global industrial chain layout and a crucial springboard for Chinese companies expanding overseas.

China has also expressed its intention to “encourage Chinese enterprises to invest and do business in Mexico,” believing that Mexico will provide a “friendly and stable business environment.”

In the future, companies from both countries are expected to deepen cooperation in various fields, including green energy and new materials, achieving mutual benefits and win-win outcomes. The success of Chinese enterprises like Rongtai in Mexico not only opens up second growth curves for themselves but also injects new momentum into China-Mexico economic and trade collaboration.