(Yicai Global) Jan. 3 -- Shares in Avic Heavy Machinery advanced as much as 4.7 percent today after the Chinese aviation equipment supplier said it will build an aerospace materials and components industrial park costing around CNY7 billion (USD1 billion).

Avic Heavy’s share price [SHA:600765] closed up 2.9 percent at CNY32.02 (USD4.65). Earlier in the day it reached CNY32.58.

The industrial park, which will be located in the Guizhou Shuanglong Airport Economic Zone in Guiyang, southwestern Guizhou province, will be comprised of a company headquarters, a research center and several production lines for precision aviation materials and components, Avic Heavy said on Dec. 30.

Avic Heavy specializes in forgings, castings and hydraulic components that are widely applied in the sectors of aerospace, new energy and engineering machinery. By being located in the Guizhou Shuanglong Airport Economic Zone, the Beijing-based firm will get to participate in high-end industrial projects in the area and extend its business scope, it said.

The facility will be built in four phases and should be fully up and running by 2030, the company said. Construction on the first phase, costing CNY930 million (USD135 million), already started late last year and will continue until 2024, it said. The subsequent phases will each take two years to build and will cost CNY1.6 billion (USD239.7 million), CNY2.3 billion and CNY2 billion respectively.

Editor: Kim Taylor