(Yicai Global) June 7 -- Shares of Shida Shenghua Chemical Group plunged after the Chinese firm said it will stop pursuing a new energy vehicle battery materials project in Poland due to regulatory hurdles and the Covid-19 pandemic.

Shida Shenghua’s [SHA: 603026] share price dived as much as 6.5 percent to CNY107.51 (USD16.80) intraday, still more than four times up from a year ago.

The chemicals firm has not been able to secure local government approval for the electrolytes plant due to the global Covid-19 pandemic, the Shandong province-based company said in a statement on June 4. Moreover, because of the epidemic, the expected advantages of the factory are now gone amid uncertainties in the NEV sector, it added.

The termination shouldn't significantly affect the company's business performance, according to the statement.

In March 2019, Shida Shenghua said it will set up a joint venture with local partner PCC Rokita to build a CNY170 million (USD26.6 million) factory in southwestern Poland's province of Lower Silesia, expecting to finish the project in two years to tap into the rising NEV sector in Europe.

Editor: Emmi Laine, Xiao Yi