(Yicai Global) April 8 -- Shares in Jintongling Technology Group surged as much as 9.4 percent today after the Chinese fluid machinery supplier announced that a unit has won a CNY1.7 billion (USD260 million) contract to build two thermal power plants for Indonesian mining-to-shipping conglomerate Harita Group.

Nantong, eastern Jiangsu province-based Jintongling’s share price [SHE:300091] advanced 5.71 percent today to close at CNY4.26 (USD0.65). Earlier in the day it hit CNY4.41.

Shanghai Yunneng Energy Technology will build two coal-fired power plants, one with an output of 110 megawatts and the other with 300 MW, at a steelworks industrial park run by Jakarta-based Harita, Jintongling said yesterday.

There will be one power station for each stage of construction of the park, according to the agreement signed with Harita unit Kalimantan Besi Bata on April 5. The first will cost CNY490 million (USD74.8 million) and should be finished within two years of the first payment being received and the second will cost CNY1.23 billion and should be finished in three years.

The prices are denominated in Chinese yuan but will be paid in US dollars at the central parity rate set by the People Bank of China on the day of the transaction, Jintongling said.

The steel mills will use Harita’s own iron ore and coal as raw materials and will produce 500,000 tons of stainless steel and one million tons of carbon steel a year once completed.

Editor: Kim Taylor