(Yicai Global) Aug. 30 -- Kaizhong Precision Technology plans to invest CNY350 million (USD49 million) on a smart production base for new-energy vehicle parts in anticipation of a rise in demand.

The Shenzhen-based firm, which makes parts for the likes of Bosch, Daimler and Continental, will build the plant in its home province Guangdong, it said in a statement yesterday. It already has the land so only needs to invest in the building, equipment and supporting facilities, it added, saying construction should take about two years.

The company's share price [SHE:002823] started 1 percent higher but was down 1.3 percent from yesterday's close at CNY9.90 (USD1.38) as of the lunch break.

China's NEV market has been expanding rapidly in recent years and despite a blip last month -- when sales slipped for the first time in two and a half years -- managed to sell 699,000 units in the first seven months, up 41 percent on the year, according to the China Association of Automobile Manufacturers.

Kaizhong did not disclose exactly what products it plans to make at the facility, simply stating that its current business focus is on components for batteries, motors, electronic controls and weight reduction, and any parts which China struggles to produce domestically.

Editor: James Boynton