(Yicai) Sept. 6 -- Kedali Industry, a Chinese manufacturer of lithium battery parts, said it will construct a factory in Hungary to fulfil a new six-year supply order from a well-known European lithium battery maker.

Kedali will supply 350 million sets of lithium battery covers to the unidentified client, the Shenzhen-based firm said today. It will also set up a unit in Hungary to take over the order.

The deal, which will renew automatically for four years if neither party proposes to terminate it, will enhance Kedali’s sustained profitability and consolidate its core competitiveness in the global market, it noted.

Founded in 1996, Kedali makes precision structural components for lithium batteries and parts for vehicles. Its products are widely used in the auto and new energy vehicle sectors, as well as in portable communications and electronic products, electric tools, and energy storage power stations.

Shares of Kedali [SHE: 002850] ended down 1.2 percent at CNY104.14 (USD14.26) apiece today, after earlier falling by as much as 3 percent. The wider Shenzhen market rose 0.1 percent.

Editor: Martin Kadiev