(Yicai) Dec. 25 -- Shares of Cubic Sensor and Instruments rose after the Chinese sensor provider said it plans to invest up to CNY100 million (USD14 million) to build a new production base in Hungary to achieve localized production for its European clients.

Cubic Sensor [SHA: 688665] was trading up 2.3 percent at CNY69.93 (USD9.80) as of 11.00 a.m. in Shanghai today.

Cubic Sensor’s Hong Kong-based unit will set up a project firm in Budapest that will be responsible for the investment, construction, and operation of the new plant, which will mainly produce gas sensors, the Wuhan-based parent company announced late yesterday, without revealing any further details.

Through the Hungarian production base, Cubic Sensor can better meet the needs of many of its existing and potential clients in Europe, refine its international marketing channels, and deal with the potential adverse impacts of changes in the international trade landscape, the firm noted.

Cubic Sensor announced on Dec. 15 that it won a contract to supply air quality sensors to the new model of a well-known European carmaker for 10 years from 2025. The deal is expected to bring the company a total of about CNY127 million.

Cubic Sensor’s in-car sensors business segment has seen very fast growth. Last year, sales revenue of the company’s in-car sensors rose 118 percent from the previous year, much faster than its 10 percent overall business revenue growth, according to the firm’s annual earnings report for last year.

Editor: Futura Costaglione