(Yicai) Aug. 1 -- Shares in Cotran New Material surged as much as 17.5 percent today after the Chinese rubber sealant materials maker said it is teaming up with the Chinese arm of US conglomerate Honeywell International on heat dissipation and other tech for data center servers.

Cotran’s share price [SHE:300731] close the day up 6.8 percent at CNY21.07 (USD2.95). Earlier in the day it hit CNY23.19.

Cotran and Honeywell Trading Shanghai plan to develop technology and products that will help reduce thermal stress in data center servers, the Shenzhen-based company said yesterday, citing the memorandum of understanding recently penned between the two parties.

The strategic partnership enables both firms to leverage their strengths in tech, products and market resources in the field of heat dissipation, Cotran said. Should the tie-up go well, it will help enhance Cotran’s core competitiveness and profitability.

The pair will allocate dedicated staff to work on the research and development of the projects they cooperate on, Cotran said. Further negotiations and the signing of a formal cooperation are still needed.

Retek, Cotran's unit in Suzhou, eastern Jiangsu province, specializes in heat dissipation tech. It makes cooling systems that are applied in communication base stations and servers and it also produces cooling solutions for batteries, energy storage systems and home appliances. As of April, it was a supplier of liquid cooling plates to almost 20 clients.

Editor: Kim Taylor