(Yicai Global) April 12 -- China’s Hangke Technology said it has landed orders worth USD115 million for lithium-ion battery production equipment from South Korean power battery maker SK On.

Hangke will supply CNY337 million (USD53 million) of equipment to SK On’s battery plant in Yancheng in China’s Jiangsu province, and gear worth USD61.8 million to the Korean firm’s plant in Hungary, the Hangzhou-based company said in a statement released yesterday.

Hangke did not provide any further details such as delivery dates. The contract was signed on April 11.

SK On is a power battery subsidiary of SK Innovation, a major petrochemicals firm. It has been a client for the past three years, Hangke said, with income from the Korean company climbing to CNY110 million in 2020, accounting for 7.4 percent of Hangke’s total revenue that year.

The Yancheng factory has an annual production capacity of 10 gigawatts. In January, SK On started building a new plant with a total investment of USD2.5 billion and a planned annual capacity of 30 GWh, local media reports said.

It expects to install equipment next January, and the Yancheng plant will become SK On’s largest battery production base after it comes onstream, the reports added.

The new orders failed to boost Hangke’s share price [SHA: 688006] today, which closed just 0.2 percent higher at CNY50 (USD7.85).

Editor: Tom Litting