(Yicai) Dec. 26 -- Shares in Zhejiang Tongxing Technology surged to the highest since September 2023 after the Chinese manufacturer of refrigeration equipment and components said that it will invest USD20 million to construct a factory in Thailand to better meet the demand of its international clients and to respond more flexibly to changes in the global trading landscape.

Tongxing’s share price [SHE:301252] was trading up 3.8 percent at CNY36.50 (USD5) as of 1.30 p.m. Earlier in the day it surged 8.1 percent to CNY38. Yesterday, the stock soared 20 percent despite any new developments being announced.

The Thai plant will focus on the research and development as well as the production and sales of refrigeration equipment and components, the Shaoxing-based company said yesterday. No further details such as the main products, annual capacity or construction timetable were given.

Tongxing operates six production bases across China, which make a wide range of products such as refrigeration components, automobile air conditioning tubing and cooling unit modules. The company counts South Korean home appliance supplier LG Electronics, Japanese ice machine maker Hoshizaki and US air conditioner manufacturer Carrier among its clients.

In the first half, Tongxing's refrigeration equipment business generated revenue of CNY476 million (USD65.2 million), accounting for 83 percent of total revenue, according to its latest semi-annual report. Earnings from its automotive air conditioning parts business logged revenue of CNY78.4 million (USD10.7 million), amounting to 13.6 percent of total revenue.

Editor: Kim Taylor