(Yicai Global) March 15 -- Wedge Industrial's shares rose after the Chinese company said it plans to meet growing demand for superalloys by increasing its research, development, and production capacity at a cost of CNY697 million (USD101 million).

Wedge Industrial [SHE: 000534] finished up 3.3 percent at CNY17.34 (USD2.51) today, after soaring by as much as 7.6 percent in the morning.

The Futian-based company will use the funds for six capacity expansion and R&D center projects in Shanghai and Shenzhen, it said late yesterday. The firm will raise its capacity to turn out superalloys, several types of engine blades, and precision-cast structural components among other products, it added, without disclosing a construction schedule.

Wedge Industrial has won orders for engine and combustion gas turbine blades for commercial use as China's output of aero-engines and combustion gas turbines is rising, but the company's existing capacity has fallen short of demand, it pointed out.

The latest project will hike output capacity and product quality and swell Wedge Industrial’s share of the high-end superalloys market, the company noted, adding that its business and finances will also likely benefit.

Wedge Industrial's superalloys and structural components are used in aero-engines, combustion gas turbines, and nuclear power and locomotive power ancillary parts, according to its website. 

Editor: Martin Kadiev