(Yicai) March 13 -- Goldcup Electric Apparatus said the leading Chinese manufacturer of electric wires and cables plans to spend around CNY700 million (USD96.7 million) to establish an electromagnetic wire factory in the Czech Republic to better serve its European and other overseas clients.

Goldcup Electric intends to buy and renovate an existing factory in the Czech Republic to make it its new production bass, the Changsha-based company announced late yesterday. The new plant will have an initial production capacity of 8,000 tons of electromagnetic wires, which should go live by the end of this year or early next year, it noted, adding that its annual output will reach 20,000 tons by 2028.

The project will help Goldcup Electric capitalize on the significant market demand for electromagnetic wires in Europe, which is driven by the upgrading and renovation of the power grid and the expanding new energy vehicle sector on the continent, according to the company.

The new factory still requires the approval of shareholders and relevant Chinese and Czech regulators, Goldcup Electric said.

In 2023, Goldcup Electric's electromagnetic wire business brought in operating revenue of CNY5 billion (USD693 million), accounting for 33 percent of its total, according to its financial report. Its products are used in transformers, motors, and other emerging products, including photovoltaic and wind power inverters and superconducting magnets, while it counts Siemens, General Electric, and Philips among its well-known clients.

Shares of Goldcup Electric [SHE: 002533] ended down 0.3 percent at CNY11.70 (USD1.62) each in Shenzhen today. The stock, which has surged nearly 26 percent since Feb. 18, added 3.7 percent earlier to reach a new high since July 2016. The broader Shenzhen market dropped 1 percent.

Editor: Martin Kadiev