(Yicai Global) April 28 -- Tinci Materials Technology, which counts China's largest new energy vehicle battery maker as its client, will spend CNY289 million (USD40.8 million) to construct a new factory in southeastern China to optimize customer experience and reduce transport costs.

The company will set up a local unit in Ningde to take care of the project that should be ready in 12 months and lift the parent's annual electrolytes output by 100,000 tons, the Guangzhou-headquartered fine chemicals and new materials maker said in a statement yesterday. Ningde is home to NEV battery giant Contemporary Amperex Technology.

Tinci, along with its four plants, has an annual capacity of 50,000 tons of electrolytes. The related business makes up more than 60 percent of its income, according to its earnings report from last year. It has another factory in the works in eastern Jiangsu province that should raise the annual capacity by 200,000 tons, public data show.

Last year, China's NEV electrolytes shipments expanded by 30 percent to 183,000 tons from 2018, according to a survey done by Gaogong Industry Research Institute.

Tinci's stock price [SHE: 002709] rose by 3.35 percent to CNY26.19 (USD3.70) in the afternoon.

Editor: Emmi Laine