(Yicai Global) June 1 -- Shares in Dalian Haosen Equipment Manufacturing surged as much as 8.4 percent today after the Chinese smart factory equipment maker said that it has secured an order worth CNY991 million (USD139.6 million) from Swedish auto manufacturer Volvo Car for intelligent production lines that make new energy vehicle batteries.

Haosen's share price [SHA:688529] was trading up 5.5 percent at CNY25.30 (USD3.50) as of 11.30 a.m. China time. Earlier in the day it hit CNY25.98.

Unit Haosenread Equipment Manufacture will supply Gothenburg-based Volvo with production facilities for two different stages of the electric car battery manufacturing process, Haosen Equipment said yesterday, citing the deal signed between the two parties on May 30. The annual capacity, delivery times and other details were not mentioned.

The deal will have a positive impact on Haosen’s expansion overseas, the Dalian, northeastern Liaoning province-based company said. The order is for a turn-key project in Sweden’s Goteborg, where Volvo is building a battery factory with Swedish battery maker Northvolt.

Construction on the joint venture battery plant will start this year, Volvo said in February 2022. When finished, it will have an annual output of 50 gigawatt hours, enough to supply 500,000 pure electric cars.

Editor: Kim Taylor