(Yicai Global) July 24 -- Yawei Machine Tool's [SHE:002559] stock price rose by the daily limit this morning after the Chinese metal forming equipment maker announced that its unit will purchase a majority stake in South Korea's LIS for CNY385 million (USD56 million) to expand its laser cutting apparatus business. 

Yawei Machine Tool's [SHE:002559] share price climbed 10 percent to CNY5.60 (US 80 cents).

Yawei Precision Laser South Korea seeks to buy nearly 22 percent of LIS's shares from Sooin Cosmetic and BNB Investment, the Jiangsu province-based parent announced yesterday.

Yawei Machine Tool and LIS will build a joint venture in China with the registered capital of CNY80 million, 51 percent of which is from the Chinese partner. The JV will focus on developing and selling laser processing technologies to produce display panels, consumer electronics and new energy vehicles.

Founded in 2003, LIS is the main supplier of electronic screen cutting apparatus for China's BOE Technology Group, China Star Optoelectronics Technology, Tianma Microelectronics and Visionox Technology.

Founded in 1956, Yawei serves sheet metal, electric, and elevator producers. 

Editor: Emmi Laine