(Yicai Global) March 10 -- Shouhang High Tech Energy's shares jumped today after the Chinese air cooling system firm said that it will start making face mask fabric to ease its subsidiary's raw material shortage amid the soaring virus-hit demand.

Shouhang's stock price [SHE:002665] climbed by 5.74 percent to CNY3.87 (US 56 cents) this morning with a CNY8.9 billion (USD1.3 billion) market cap.

The company will invest CNY20 million (USD2.9 million) to build a melt-blown non-woven material production line in northeastern Tianjin, the Beijing-based firm said in a statement yesterday, without disclosing details about timing or capacity. The parent will establish a local subsidiary to take care of the project. Besides Tianjin, Shouhang already makes surgical masks in southern Fujian province.

China usually needs about 20,000 tons of face mask fabric per year but the demand has surged amid the Covid-19 epidemic. Consequently, prices have risen as much as 20 times in some regions.

Many domestic firms have gained on their face mask textile visions. Dawn Polymer's share price [SHE: 002838] has more than quadrupled since the Chinese New Year holiday ended in early February. Meanwhile, WOTE Advanced Materials [SHE:002886] has risen nearly 74 percent. Senior Technology Material's equity price [SHE:300568] climbed by the daily limit yesterday after the parent announced new factory plans but the shares walked it all back today.

Editor: Emmi Laine