(Yicai Global) Jan. 22 -- Reinventing  Fire Technology, a major Chinese fuel cell system manufacturer, will  construct a plant that produces complete hydrogen fuel cell vehicles and  parts in southern Chinese Guangdong province. 

Reinventing Fire, also known as Re-Fire,  penned an agreement with the Nanhai district government in the city of  Foshan on Jan. 19 regarding the CNY2 billion (USD294.5 million) project,  the Shanghai-based firm posted on its WeChat social media account. 

The initial investment of CNY2.2 billion  will be used for building a research and development base for hydrogen  fuel cells, systems and parts. The plant will have an annual output  value of CNY15 billion. 

Foshan has attracted other hydrogen  businesses too. In 2017, Hangzhou's Changjiang Automobile decided to  construct a new energy vehicle plant in Nanhai, and Hong Kong  billionaire Li Ka-shing was one of the investors. The factory will make  160,000 NEVs including hydrogen fuel cell cars each year. 

"Nanhai district has developed a complete  industrial chain for hydrogen vehicle production that supports the  local energy industry, Gu Yaohui, the head of Nanhai district  government, said at Re-Fire's signing ceremony. One reason for the  allure is that while subsidies for other NEVs have diminished, hydrogen  businesses still enjoy ample government support.

Editor: Emmi Laine