(Yicai) March 6 -- Changling Hydraulic, a Chinese supplier of hydraulic components, plans to bolster its expansion abroad by investing USD18 million in a new plant in Thailand that will make engineering machinery parts. Its shares rose.

Changling has penned a letter of intent with WHA Industrial Development to buy land for the plant in the eastern Thai city of Rayong for THB3,850,000 (USD107,750), the Jiangyin-based company announced yesterday.

Shares of Changling Hydraulic [SHA: 605389] closed 2.8 percent higher at CNY21.18 (USD3) each in Shanghai today.

The factory will mainly develop, produce, and sell slewing drives and parts for hydraulic systems, the firm said, without providing more details. The firm said it would set up an investment management company in Singapore to run the Thai project company.

Changling develops and makes hydraulic components and parts as well as precision casting products. The company counts Caterpillar, HD Hyundai Heavy Industries, John Deere, Emerson Electric, ZF Friedrichshafen, and Komatsu among its clients, according to its 2022 earnings report.

Editor: Emmi Laine