(Yicai) Dec. 9 -- Shares of Rongtai Electric Material surged after the Chinese supplier of mica-based insulating and thermal-protection products said it would invest USD77 million to build a factory in Thailand to better meet overseas customer demand by expanding production of insulation components for new energy vehicles, and robotic parts.

Rongtai’s shares [SHA: 603119] surged more than 7 percent in early trading on the news before narrowing gains as major stock indexes fell, closing up 1.1 percent at CNY98.02 (USD13.90) today. The Shanghai Composite Index declined 0.4 percent.

The leading supplier of NEV insulation materials said yesterday that the Thailand plant is designed to produce 14,000 tons of mica paper and 4,500 tons of mica products a year, along with seven million sets of robotic components. The project is scheduled to be completed and put into operation by the end of 2026.

The new facility will strengthen Rongtai’s overseas production and supply system, deepen cooperation with globally renowned clients, and enhance customer loyalty, according to the announcement.

While the firm disclosed no further details on the project or customers, its 2023 annual report shows that its high-temperature-resistant insulating mica materials are supplied to major global NEV makers, including Tesla, Volkswagen Group, BMW Group, and Mercedes-Benz Group.

Rongtai is expanding its presence in robotics. The firm completed its acquisition of a 51 percent stake in Shanghai-based Dizi Precision Machinery in June. Dizi develops planetary roller screw products for humanoid robots, enabling Rongtai to rapidly enter the emerging field of precision transmission components for humanoid robots.

Editor: Emmi Laine