(Yicai) Aug. 18 -- Shares in Weili Transmission surged to almost 18 percent today after the Chinese wind energy equipment maker said it will spend CNY5 billion (USD686 million) to construct a plant that makes wind power augmenters, which help to boost turbines' efficiency in converting wind power to electrical power.

Weili’s share price [SHE:300904] was trading up CNY110.17 (USD15) as of 1.20 p.m. China time today. Earlier in the day it hit CNY114.

The facility, which will be located in Yinchuan, northwestern Ningxia Hui Autonomous Region, will produce wind power augmenters, the firm said yesterday, citing the agreement penned with the Yinchuan Economic Development Zone. Wind power augmenters accelerate the speed of the wind as it enters the turbines and improve the reliability and stability of the system.

The new plant will boost Weili’s output and profitability and consolidate its leading position in China’s wind power equipment sector, the Yinchuan-based company said. No details of the production capacity and timetable were given.

Weili, whose clients include Chinese wind giants Goldwin and Mingyang Smart Energy as well as foreign renewable energy leaders such as Siemens Gamesa, specializes in wind power reducers, which are used in onshore and offshore wind turbines. The firm held 17 percent of the Chinese wind energy reducer market in 2020, according to its initial public offering prospectus.

Weili went public on the Shenzhen Stock Exchange’s Growth Enterprise Market on Aug. 9, raising CNY780 million (USD106.9 million). The funds will be used to develop and produce precision reducers as well as to supplement working capital, it said at the time.

Editor: Kim Taylor