(Yicai Global) Nov. 9 -- Shares of Zhejiang Yongjin Metal Technology surged over 6 percent today, after the Chinese stainless steel material supplier announced a CNY1.4-billion (USD193 million) plan to build a production plant for battery housing materials.
Yongjin [SHA: 603995] shares eventually closed up 4.9 percent at CNY29.77 (USD4.11) today. 301 304 316 Stainless Steel Sheet
Yongjin plans to build the plant in eastern Zhejiang province in two phases, with a total production capacity of 225,000 tons of battery housing material per year, the Zhejiang-based company announced late yesterday.
The first phase, with an annual capacity of 75,000 tons, is scheduled to be completed within 12 months after construction starts, and the second phase, with the remaining capacity, will have a 15-month construction period, per the statement.
The announcement did not provide further details about the proposed plant, but only said that the project will rely on the company’s rich experience accumulated in producing ultra-thin precision stainless steel strips.
When put into operation, the project will help enrich the company’s product categories and improve its profitability, it added.
201 Stainless Steel Strips Yongjin is a supplier of various stainless steel materials, with production bases in four coastal provinces in China. Its annual cold-rolled stainless steel material production totaled over 2 million tons. In addition, its production base project in Vietnam was completed in March, and a production base in Thailand is under construction, according to its website.