(Yicai Global) Dec. 12 -- Citychamp Dartong Co. [SHA:600067] officially began operations at its new lithium-ion battery production line in Fuqing, Fujian province yesterday as the firm looks to ramp up output.

The first phase of the project covers a 0.9 gigawatt-hour fully automated production line and power pack production line, which will mainly provide energy-storage products for car companies and other customers, China Securities Journal reported.

Citychamp has already begun construction of the second phase, which will ramp up capacity to two gigawatt-hours, Han Xiaohuang, chairman, said at an inauguration ceremony yesterday.

"The first phase can power about 3,000 new-energy buses," said Liu Hai, director. The company expects its new-energy battery capacity will reach 5.6 gigawatt-hours after the completion of the project's third phase. "Our goal is to reach 8 gigawatt-hours in 2020," he added.

The company, which specializes in real estate and enameled wire services, said it was moving into finance, new energy, healthcare and other fields to find new sources of profit growth.

"The new-energy business needs time to hatch," Liu said. "We will see initial results of the company's transformation in the field by 2019. In the next five years, the company's new-energy business will contribute CNY10 billion (USD1.5 billion) in operating income, making up 30 percent of the total figure."

Citychamp also signed up its first batch of key downstream customers at the ceremony. It teamed up with Haixi Research Institute under the Chinese Academy of Sciences to set up a lab and research new-energy materials to develop lithium batteries and other energy storage solutions; and partnered Canada-based Plan B Energy Storage to develop the high-end storage market at home and abroad.