(Yicai Global) March 17 -- Douson Drilling and Production Equipment said the Chinese firm plans to invest CNY1 billion (USD146 million) raising its capacity to produce industrial equipment, including tool kits for making lithium battery copper foils.

Douson’s unit Kota Technology will be responsible for the construction and operation of a new plant in Nantong, a city on the Yangtze River mouth, its Suzhou-based parent company said late yesterday.

Douson will use CNY200 million to CNY400 million of its own funds for the project and raise the remaining CNY600 million to CNY800 million directly or indirectly, the firm added.

Construction work is expected to wrap up within 18 months from the acquisition of the land, Douson said, noting that the project will begin operation within six months after being built.

Douson entered the market for high-end equipment for producing battery materials after acquiring 51 percent of Kota, a leading Chinese supplier of copper foil-making equipment, for CNY425 million (USD61.8 million) last June.

This January, the company said it expects to have achieved a net profit of CNY102 million (USD14.8 million) last year, versus a net loss of CNY35.6 million (USD5.2 million) in 2021, mostly thanks to Kota’s rapid revenue and profit growth in the period.

Douson’s stock price [SHA: 603800] closed down 0.4 percent at CNY27.94 (USD4.06) in Shanghai today, giving it a market capitalization of CNY5.8 billion.

Editor: Futura Costaglione