(Yicai Global) June 21 -- Shares of Innovation New Material Technology fell after China’s biggest producer of aluminum alloy bars said it plans to invest nearly CNY1.4 billion (USD191 million) to build a plant in Vietnam.

Innovation New Material [SHA: 600361] closed down 2.3 percent at CNY4.72 (65 US cents) a share in Shanghai today.

Greenwich Management, a Hong Kong-based unit of Innovation New Material, will set up a firm in Vietnam that will be responsible for the investment, construction, and operation of the new plant, its parent company announced late yesterday.

The plant, which is still in the preliminary stages of preparation, will produce aluminum alloy sections mainly used in 3C -- computer, communication and consumer electronics -- products for the Southeast Asian market, Innovation New Material said.

The project will take full advantage of low labor costs and convenient transportation to enhance Innovation New Material’s ability to handle more orders, expand its overseas production base layout, and improve customer satisfaction, the firm noted.

Innovation New Material produced over 4.2 million metric tons of aluminum alloy products last year, of which 99,800 mt was aluminum alloy sections, according to its latest annual report. Some of the products were supplied to original equipment manufacturer Foxconn and will be used in notebooks, smartphones, and tablets for Apple, Dell, and HP.

Editor: Futura Costaglione