(Yicai Global) July 21 -- Shares of Gaoce Technology jumped to a more than six-month high after the Chinese cutting equipment maker said it will invest CNY1.6 billion (USD254.6 million) to build another solar wafer project.

Gaoce's stock price [SHA:688556] jumped by the daily limit of 20 percent to CNY25.9 (USD4), the highest since January.

The company will issue convertible bonds to shareholders and other investors to raise CNY490 million (USD75.7 million) for the first phase of the project in southwestern China's Leshan, the Qingdao-based firm said in a statement yesterday.

This is the second major solar wafer project that the expanding firm has announced over the past month. In early July, Gaoce said it will invest about CNY545 million to build a 10-gigawatt large-sized wafer plant in eastern China’s Jiangsu province.

Gaoce will give full play to its technological advantages in cutting equipment and industrial synergies to seize market opportunities amid the rising trend toward thinner and larger photovoltaic wafers, it added in yesterday's statement.

The first phase of the Leshan factory requires about CNY566 million. It should take nine months to build and result in a 6-GW capacity of solar wafers.

The second phase will add 14 GW in annual output and cost CNY1.1 billion. The timetable is based on market conditions, according to the firm.

Editor: Emmi Laine, Xiao Yi