(Yicai Global) March 12 -- Wire manufacturer Roshow Technology and Chery Automobile's commercial vehicle arm are joining forces to develop and produce power battery pack systems for hybrid and pure-electric vehicles.

The pair will invest CNY100 million (USD14.3 million) to set up a joint venture to build a factory in Anhui province, Zhejiang-based Roshow said in a statement yesterday. Chery Commercial Vehicles Anhui will take a 51 percent stake in the unit.

Shares in Roshow [SHE:002617] had climbed 4.56 percent to CNY6.19 (89 US cents) as of 1.53 p.m., despite Shenzhen's benchmark index plummeting 2.4 percent.

The venture will leverage each firm's industry experience and resources, the statement added, but did not disclose specific details about the factory's construction schedule, capacity or product types.

Roshow is one of China's main suppliers of electromagnetic wires and runs one of the country's biggest factories capable of making aluminum core and ultra-fine electromagnetic wires. It began shifting toward lithium batteries, new-energy motors and other products over the last few years.

Editor: James Boynton