(Yicai Global) May 23 -- Shares of Shenzhen Longood Intelligent rose after the Chinese intelligent electronic product maker said it plans to invest CNY1.2 billion (USD179 million) to expand the capacity at its plant in Vietnam.

Longood [SHE: 300543] closed up 1.7 percent at CNY9.25 (USD1.39) today, giving it a market capitalization of about CNY2.5 billion.

The Shenzhen-based firm will build a new workshop of 22,000 square meters with ancillary facilities in its 120,000-sqm plant in Binh Duong, increasing the capacity at the venue by 7.5 million sets of intelligent controllers for the application of artificial intelligence and internet of things technologies on home appliances, it announced on May 20.

Raising the capacity in Vietnam will help Longood to avoid trade frictions for exported products, take full advantage of preferential policies and low labor costs in the country, and provide a steady and sufficient supply of raw material devices to its downstream clients on the industrial chain of its local plant, the company added.

Longood has also plants in southern China’s Guangdong province and eastern Zhejiang and Anhui provinces.

Editor: Futura Costaglione