(Yicai) Jan. 4 -- Shares of Zhejiang Sanhua Intelligent Controls rose after the company said it plans to invest CNY5 billion (USD703.4 million) building a new production base for smart auto thermal management and robot components in the Chinese city of Hangzhou.

Sanhua [SHE: 002050] closed 1.6 percent higher at CNY27.05 (USD3.79) a share in Shenzhen today, after jumping by as much as 2.6 percent at one point. The benchmark Shenzhen component Index fell 1.2 percent.

Sanhua will spend CNY3.8 billion on the research, development, and production of robot servo motor actuators and domain controllers, the Shaoxing-based firm announced late yesterday. The rest of the investment will be used to make intelligent inverter controllers.

The company will expand the scale of its refrigeration, air conditioning appliances, and auto parts businesses through the project, it said.

The base will also allow it to use existing resources and technical advantages to enter the robot parts market, which will improve its industrial innovation capabilities and core competitiveness, Sanhua noted, without disclosing the annual output capacity and construction schedule.

Editor: Martin Kadiev