(Yicai) Oct. 13 -- Chinese new materials firm Lushan New Materials plans to invest CNY150 million (USD20.6 million) to set up a photovoltaic unit in Malaysia to meet the overseas demand for solar cell encapsulation films and other PV products and accelerate its overseas expansion.

Lushan Advanced Materials (Malaysia) will be set up by Lushan New Materials' Singaporean unit Haipu Technology with self-raised funds, Guangzhou-based Lushan New Materials announced yesterday.

Lushan Advanced Materials (Malaysia) will produce solar module packaging materials, solar cell supporting materials, functional polyolefin hot melt adhesive materials, hot melt adhesive films, and new polymer materials, Lushan New Materials said. The unit will also develop new materials, energy, and equipment, install PV equipment, and distribute generation systems.

The overseas investment will not adversely affect the company's financial and operating conditions but help further expand its overseas market, Lushan New Materials noted.

Founded in 1998, Lushan New Materials researches, develops, produces, and sells green, high-performance, and functional polymer materials. Its main products are widely used in the PV, consumer goods, furniture, construction, energy pipelines, packaging, and other industries.

Shares of Lushan New Materials [SHA: 603051] were trading down 1.4 percent at CNY32.84 (USD4.50) as of 10.20 a.m. in Shanghai today.

Editor: Futura Costaglione