(Yicai Global) Dec. 23 -- Tuopu Group’s stock price surged by the bourse-imposed daily trading limit after the auto parts manufacturer unveiled plans to invest CNY1.5 billion (USD235 million) over five years to build a new plant to make components for new energy vehicles.

Shares of Tuopu [SHA: 601689] rose 10 percent to close at CNY56.54 (USD8.80) apiece, the day’s high. The stock has climbed 47 percent to date this year.

Tuopu signed an agreement with the Shapingba district government of Chongqing, the largest municipality in southwestern China, where the plant will be built, the Ningbo-based company said in a statement late yesterday.

The project’s first phase will see a lightweight chassis system built for NEVs, along with a vehicle interior sound insulation system. The second phase will lay out the production of electronic and thermal management systems. Tuopu gave no further details, including about production capacity.

Chongqing is a major production hub for Chang’an Automobile Group. Many overseas carmakers, including Ford Motor and Hyundai Motor, also have joint venture plants in the city.

Tuopu’s new plant will meet growing demand from clients and its location will not only improve response time and cut production and transport costs, but will also guarantee resources for the firm’s future development, it said. Tuopu’s foreign clients include Tesla, Ford, General Motors, BMW, Daimler, Mercedes-Benz and Volkswagen.

Editor: Peter Thomas