(Yicai Global) June 22 -- Kinlita Chemical, a Chinese company that typically produces paint, has penned a service contract to paint the bodies of vehicles made by Chinese auto giant Geely Automobile.

The Shanghai-based firm will supply the paints and carry out the coating at Geely’s production line in Hangzhou Bay over the next two years, it said in a statement yesterday.

Shares in Kinlita [SHE:300225] closed up 1.7 percent at CNY6.70 (95 US cents) after rising by more than 5 percent in the morning session.

The pair will agree on prices using online data from Geely’s production workshops, according to Kinlita’s statement. The prices will be determined based on each vehicle model and will be fixed regardless of potential market and policy changes.

Kinlita did not disclose general financial details, but mentioned Geely sold 1.36 million vehicles in 2019 and that its main passenger car production hub is at the Hangzhou Bay factory.

Editor: James Boynton