(Yicai Global) June 29 -- Jones Tech plans to invest CNY737 million (USD101.7 million) to construct a production base for the materials used in electronic devices in Thailand to better supply its overseas customers, the Chinese materials solution provider for electronic equipment said.

The facility, which will be based in the WHA industrial park in Rayong, will mainly manufacture thermal conductive materials, electromagnetic shielding materials and binders for electronic devices such as smartphones and laptops, the Beijing-based company said in a report released yesterday.

Building a factory in Thailand can better meet the needs of customers in Southeast Asia, which has a thriving mobile phone and laptop market, it said. The firm plans to turn it into an overseas delivery base in the future, it added.

The plant should achieve over CNY1 billion (USD138 million) in revenue each year once finished, Jones Tech said. Construction will take two years, after which trial operations will start. The payback period, including construction, will be just over six years. No further details, such as the annual production capacity, were given.

Jones Tech, which counts tech giants such as China’s Huawei Technologies and Sweden’s Ericsson among its clients, plans to raise CNY300 million (USD41 million) through a private placement of new shares to help fund the project, it said.

Jones Tech’s stock price [SHE:300684] closed flat at CNY21.42 (USD3) today.

Editor: Kim Taylor