Zhejiang Meili High Technology Co Ltd plans to increase its research and development budget as it bids to become a global power.

The spring manufacturer will invest 47 million yuan ($6.9 million) into expanding its technology center in Zhejiang province.

"It's important to be involved in research and development when it comes to cutting-edge technologies," said Zhang Bihong, chairman of the company. "That will help us participate on the global stage."

Founded in 2002, the company employs more than 600 workers, according to its website, and is "the backbone of China's spring industry".

With a range of products, Meili supplies parts to the automotive and motorcycle sectors as well, industries such as engineering machinery, petroleum transport, precision instruments and sport equipment.

The A-share listed company owns 20 patents and developed a new material called ML1900, which can reduce the weight of spring products.

"We are already considering setting up new plants in Chengdu and Chongqing to meet the requirements of our clients such as automotive part suppliers," said Zhang.

Meili's products are sold in 30 countries and regions across the world, the company's website revealed, while the manufacturer's clients include global automotive part suppliers Mando Corp, Faurecia, Delphi Automotive Plc and Leggett & Platt.

Other customers are direct suppliers to car companies such as Volkswagen AG, Toyota Motor Corp, Honda Motor Co Ltd, Geely and Changan.

Zhang stressed that the company will continue to expand its sales distribution network and develop cooperation with more clients at home and abroad. "Our development program is looking good as the market is very large and we have technological advantages," said the 46-year-old chairman.

Last year, the production and sale of automobiles in China increased rapidly, hitting 28.1 million and 28 million units respectively, according to China Association of Automobile Manufacturers.

Meili's revenue in 2016 was 359.2 million yuan, a rise of 20.7 percent compared to the previous year.

Profit came in at 55.4 million yuan, an increase of 15.6 percent year-on-year, the company's financial report highlighted.

Yu Te, an analyst at Founder Securities in Beijing, described Meili as a "high-end automotive spring manufacturer" and felt the company was capable of competing with major world players.

"Meili has core technologies in producing high value-added power system springs, which make it possible to achieve the goal of import substitution in the long term," said Yu.

Established global giants such as Mubea Group and Scherdel cashed in on the booming automotive industry in Europe, the United States and Japan at the end of the 20th century.

But now a batch of Chinese spring manufacturers, such as Meili, China Spring Corp Ltd and Guangzhou Huade Automotive Spring Co Ltd, are challenging their supremacy.