(Yicai Global) Sept. 14 -- A unit of Suzhou Cheersson Precision Metal Forming will invest CNY260 million (USD38 million) to build a high-end production line for fasteners for use in fifth-generation wireless network equipment and new energy vehicle batteries.

Suzhou Industrial Park Xinkai Precision Fasteners will build the project in East China’s Suzhou to meet growing market demand for such products, the metal material processing and forming firm which holds a 55 percent stake in Xinkai said in a statement today.

Cheersson’s shares [SHE:002976] closed 1.49 percent up at CNY32.67 (USD4.78).

The facility slated to break ground next year will comprise plants, warehouses and research and development labs and will take two years to finish. When complete, it will turn out 3 billion units of the special fasteners a year, per the statement.

Xinkai, which is Cheersson’s main precision metal fastener making arm, develops, produces and sells the clips mainly used in mobile communications, automobiles and in the power and electrical industries, per the statement.

Editor: Ben Armour