(Yicai Global) Sept. 17 -- Caihong Display Devices’ stock rose after the Chinese maker of components used in display panels said it plans to invest about CNY9.10 billion (USD1.42 billion) to boost production of glass substrates for 8.5th generation liquid crystals displays.

Shares of Caihong [SHA:600707] closed up 1.7 percent at CNY8.50 (USD1.32) each today, after earlier gaining as much as 6.3 percent.

Caihong will set up a project company in Xianyang High-Tech Industrial Development Zone in northwestern Shaanxi province, it said in a statement late yesterday. The new plant will produce 5.8 million glass substrates for larger-size 8.5-gen LCDs, and will be completed in 36 months.

The size of China’s new display market has now topped the world, but it mainly depends on imports of high-generation glass substrates, the Xianyang, Shaanxi province-based firm said, noting that there is a huge market potential.

The company has already completed two mass-production lines for glass substrates applied in the 8.5th-gen LCDs in Hefei, in Anhui province, which supply large quantities to Caihong’s clients and lay the foundation for the Xianyang’s project, it added.

Editor: Futura Costaglione