(Yicai) Sept. 27 -- Kedali Industry, a Chinese maker of precision structural parts for power batteries, said the firm intends to increase the registered capital of its German unit by EUR30 million (USD31.7 million) so as to fund a capacity expansion plan.

The subsidiary will use the funds to build a new production line at its Arnstadt plant, buy equipment, and supplement working capital, the Shenzhen-based company said late yesterday, without disclosing further details.

The capacity expansion will help meet demand from overseas customers and promote Kedali’s products in global markets, it added.

Kedali invested EUR60 million building the Arnstadt factory in 2020, and it became operational in the middle of this year while still awaiting client certification, according to previous announcements. The firm is also building factories to make precision structural parts for lithium batteries in Sweden and Hungary.

Founded in 1996, Kedali’s clients include Contemporary Amperex Technology, BYD, Panasonic Holdings, LG, Northvolt, and Faurecia, according to its website.

At the end of last year, Kedali received two orders for a total of 300 million sets of battery cases and caps from French power battery supplier Automotive Cells. Earlier this month, it also inked a deal to provide 350 million sets of battery covers to an unidentified European power battery producer.

Shares of Kedali [SHE: 002850] dipped 0.3 percent to finish at CNY96.10 (USD13.15) apiece in Shenzhen today.

Editor: Martin Kadiev