(Yicai) Dec. 13 -- Shares in Zhejiang Zhongke Magnetic Industry advanced today after the Chinese producer of ferrite and neodymium magnets said it is constructing a permanent magnetic materials factory in Vietnam at a cost of USD9.9 million to expand its footprint in Southeast Asia and to diversify the sources of origin of its products.

Zhongke’s share price [SHE: 301141] was trading up 1.7 percent at CNY50.15 (USD7) as of 1.18 p.m.

The factory will produce ferrite magnetic tiles, the Dongyang, eastern Zhejiang province-based company said yesterday. Construction will be financed using its own or self-raised funds and will take around 10 months.

The new facility will allow Zhongke Magnetic to have a complete production line for permanent magnet materials in Vietnam, boost its customer base in Southeast Asia, increase its market share in the region and expand its overseas footprint, it said.

Zhongke Magnetic’s Singapore subsidiary, Zhongke Magnetic Industry (Singapore) will set up a local company called Zhongke Magnetic Industry (Vietnam) in the Southeast Asian country to run the plant, said the firm, which also produces electronic components, handicrafts as well as mechanical and electrical products.

Editor: Kim Taylor