(Yicai Global) Dec. 9 -- Holitech Technology and the provincial government of Jiangxi, China, plan to build a CNY6.5 billion (USD929 million) display panel factory to satisfy the company's rising demand for raw materials in the high-resolution screen sector.

The Jiangxi-based firm, one of China's biggest liquid-crystal display makers and a supplier to the likes of Huawei, Samsung and Microsoft, penned an agreement with the Jinggangshan Economic and Technological Development Zone's management commitment to build the plant in the zone, Holitech said in a statement on Dec. 6. The plant will make 600,000 thin-film transistor LCD panels a year, but the statement did disclose when it will open.

LCD panels are Holitech's most prominently required raw material, with market sources believing the firm may spend as much as CNY5 billion on such components next year. Making its own parts will allow the company to grapple for a share of the upstream market.

Shares in Holitech [SHE:002217] closed 1.15 percent higher today at CNY5.27 (75 US cents).

The pair plan to raise funds for the facility by setting up a CNY4 billion equity investment fund in which Holitech and its executive team will hold a 69.5 percent stake. Investment arms under the Jiangxi government and local authorities where the factory is based will hold 30 percent, while the remaining 0.5 percent will come from non-government investors.

Editor: James Boynton