(Yicai Global) Aug. 7 -- Shandong Nanshan Aluminum will invest CNY1.6 billion (USD228 million) to build a new production line for automotive aluminum alloy panel sheets to meet growing demand for lighter cars.

It will raise its annual production capacity to 300,000 tons from its current 200,000 tons, the company announced yesterday.

The demand for aluminum alloy panels in domestic and overseas markets is rising with the trend to lighten the weight of cars. The company's auto sheets have gained material certification from General Motors, Bayerische Motoren Werke, Fiat Chrysler, Nissan and other international carmakers, and its orders have continued to grow as a result, the announcement added.

The new production line is planned to piggyback an existing plant on the coast of China's eastern Shandong province, so no new land lease is necessary. The Longkou, Shandong province-based firm plans to purchase six sets of imported cold rolling mills and 10 lines of other domestically produced equipment for the project, construction of which is expected to conclude in 24 months, per the announcement.

The project will improve the company's products and enhance its core competitiveness, per the announcement.

Nanshan Aluminum's existing 200,000-ton aluminum alloy plate production line went into operation in 2015 and filled a blank in its research, development and production of products in the domestic car market.

Editor: Ben Armour