(Yicai Global) Jan. 20 -- The stock price of Hunan Kaimeite Gases soared as much as 9.2 percent today after the industrial gas distributor said it has started trial production of special gases used in the electronics industry at a new CNY310 million (USD45.3 million) processing plant in central China.

Shares of the Yueyang, Hunan province-based company [SHE:002549] ended the day 6.8 percent higher at CNY7.52 (USD1.10) each, brining their advance so far this year to 25 percent.

After two years of construction and with an investment of CNY197 million, the first phase of the plant is now ready, Kaimeite said in a statement this morning. Special gases for the electronics industry will be made at the facility after research and development.

Demand for special gases used in electronics has been on the rise in China since 2010 and in 2018 the market was worth CNY12.2 billion (USD1.8 billion), according to data from the China Semiconductor Industry Association. The gases are an indispensable raw material in the manufacturing of integrated circuits, other semiconductor products, flat panel displays and photovoltaic power generation.

Kaimeite's two-phase project will consist of 12 sets of gas-making devices and other equipment. Once completed, the factory's projected annual revenue and profit is expected to reach CNY130 million and CNY73.39 million.

Editor: Kim Taylor