(Yicai Global) Dec. 30 -- China Jushi, a leading fiberglass maker, intends to invest CNY5.7 billion (USD812 million) to build the world's first zero-carbon glass fiber plant in the Chinese city of Huai'an.

Jushi will spend CNY4.7 billion to build a factory with an annual output of 400,000 tons of glass fiber and the remaining CNY986 million (USD141.7 million) to construct a 200-megawatt wind farm for the plant to achieve zero-carbon emissions, the Zhejiang province-based firm said yesterday.

The plant, which will be wholly owned and operated by Jushi, will likely have four production lines, each with an annual capacity of 100,000 tons of reinforced glass fiber.

The supporting wind farm, to be run by an 80:20 joint venture, will have 36 wind turbines with a capacity of 5.6 MW each and one booster station that is expected to generate 500 million kilowatt-hours of on-grid electricity a year.

The project, expected to begin construction in the first half of next year and be completed in 24 months, is the world's first zero-carbon glass fiber manufacturing base, Jushi added, noting that it will help the firm raise its green manufacturing level and achieve sustainable development.

The average pre-tax return on investment will likely exceed 16.1 percent per year, the company pointed out.

Jushi’s shares [SHA: 600176] gained 1.3 percent today to close at CNY13.71 (USD1.97), giving it a market capitalization of CNY54.9 billion (USD7.9 billion). The stock has lost 25 percent of its value this year.

Editor: Futura Costaglione