(Yicai Global) Jan. 4 -- Shares in Beimo High-Tech Friction Material surged by the exchange-imposed limit today after the Chinese aircraft parts manufacturer said it had secured a 10-year purchase order for brake discs from two units of Hainan Airlines.

Beimo High-Tech’s share price [SHE:002985] was trading up 4.77 percent at CNY126.20 (USD20) as of 2:20 p.m. today. Earlier in the day it had hit CNY132.51.

The deal with regional airliner Yunnan Lucky Air and aircraft maintenance service company HNA Aviation Technic is effective Jan. 1, the Beijing-based firm said yesterday. No details were given about purchase volume and pricing.

Aircraft brake discs are a crucial piece of equipment needed on to slow a plane down on land and have to be replaced frequently. Beimo High-Tech’s product has already been certified by the US Federal Aviation Administration.

The signing of the procurement contract marks Beimo High-Tech’s entry into the supply chain for passenger planes and could be a key growth point for the firm, it said.

Editor: Kim Taylor