(Yicai) May 28 -- Visionox Technology’s shares rose after the Chinese company said it plans to invest CNY55 billion (USD7.6 billion) to build a factory in Hefei, the capital of China’s Anhui province, to produce 8.6-generation active-matrix organic light-emitting diode displays.

Visionox [SHE: 002387] closed up 2.4 percent at CNY6.93 (96 US cents) a share in Shenzhen today. The stock had jumped 5 percent after the lunch break when the firm made the announcement.

The new plant, to be located in the Hefei National High-Tech Industry Development Zone, will use glass substrates of 2,290 x 2,620 millimeters to make about 32,000 pieces of 8.6-gen AMOLED displays per month, Vision said.

The Beijing-based company signed a non-binding joint venture deal with the Hefei city government earlier today. It did not provide any details on fundraising, shareholdings, or construction and production start schedules.

The project will help Visionox expand in the market of mid-sized AMOLED displays used in tablets, notebooks, and cars, as well as enhance its comprehensive competitiveness, it said.

The partners made a similar joint investment in 2022, when they set up a JV that invested CNY11 billion in a sixth-generation AMOLED project in the city. Visionox has an almost 45.5 percent stake in that, while two investment arms of the city government own the rest. Construction started in the same year and the plant was completed and went into production at the end of last year. 

Editor: Futura Costaglione