(Yicai Global) Sept. 5 -- Industrial gas distributor Hunan Kaimeite Gases Co. [SHE:002549] intends to invest USD47.3 million (CNY310 million) to build an electronic special gas production project to fill the gap in the Chinese market and end China's dependence on foreign suppliers.

The company's board of directors approved a proposal to build 25 sets of electronic special gas making devices over a construction period of three years with a total investment of USD47.29 million yesterday. The firm will supply 40 percent of the funds, and 60 percent will come from bank loans, Kaimeite said.

If the project's sales volume is in line with expectations, its projected annual revenue and profit will be USD22 million and USD 11.32 million, Kaimeite said.

Electronic special gases are advanced electronic chemicals with a wide range of applications. They are mainly used by the semiconductor industry to make products for aerospace, satellite, military, electronic, laser, medical, and other applications.

The demand for electronic special gases has been on the rise in China with the development of mass-produced integrated circuits, flat panel displays and photovoltaic power generation, but the market depends heavily on imports.