(Yicai Global) July 12 -- China's Daodaoquan Grain and Oil, a regional leader in the nation's nascent rapeseed oil market, will invest CNY1 billion (USD143.5 million) to construct a cooking oil factory in southern China's Guangdong province. 

Daodaoquan has penned a cooperation agreement with the local administration of Maoming, the Hunan province-based firm said in a statement today, without disclosing the type of oil. China's edible oil market is dominated by soybean, corn and peanut oil. 

The company will add 1 million tons to its annual production capacity with the project, which may help in term of opening up new markets, it said. That means more than quadrupling the firm's rapeseed oil output of last year.

Daodaoquan's [SHE: 002852] stock price rose 1.6 percent to CNY14.20 (USD2.10) in the afternoon.

Editor: Emmi Laine