(Yicai) March 13 -- Shares of China's Lizhong Sitong Light Alloys Group rose after the firm announced that its Thai plant is set to sell CNY750 million (USD104.3 million) of aluminum wheels to a large global automaker in a period of eight years.

Lizhong [SHE: 300428] gained 1.8 percent to close at CNY17.83 (USD2.50) after rising as much as 2.7 percent intraday. 

NewThai Wheel Manufacturing, a Thai unit of Lizhong, has become a designated supplier of wheels for the carmaker's new models, starting from May 2025, the Baoding-based manufacturer of aluminum-based lightweight automobile parts announced yesterday. It did not disclose the name of the client nor the expected supply due to a confidentiality agreement signed by the pair.

This is the second aluminum wheel deal that the Thai factory has received in the past 30 days or so. In early February, Lizhong said the unit will make products for another foreign automaker, predicting sales income of CNY1.9 billion (USD264.1 million) within a life cycle of four years. 

In 2022, Lizhong produced 18.2 million aluminum alloy wheels, nearly 60 percent of which were made abroad. The business of aluminum alloy wheels generated CNY7.3 billion in operating revenue, making up 34 percent of the firm's total, according to the annual report.

Lizhong operates two auto wheel plants in Thailand and is currently building another such factory in Mexico which is expected to come on stream soon.

Editor: Emmi Laine