(Yicai) Oct. 30 -- Shares of Shandong Daye rose after the Chinese supplier of steel wires for tires said it plans to invest CNY1.5 billion (USD208.5 million) to build a new factory in Morocco.

Daye [SHA: 603278] closed 5.9 percent up at CNY6.42 (90 US cents) in Shanghai, while the benchmark Shanghai Composite Index closed down 0.61 percent today.

The new Moroccan plant, which is expected to be built in two phases, will have an annual production capacity of 100,000 tons of tire bead wires and 100,000 tons of tire steel cords, Daye announced yesterday.

The first phase will cost CNY850 million (USD119.1 million) and produce 40,000 tons of each tire bead wire and tire steel cord once completed by the end of 2026. No schedule was released for the second phase.

The project will help Daye respond quicker to and reduce the adverse impacts of macroeconomic environment change and the threat of international trade frictions, as well as take full advantage of Morocco’s solid industrial foundation and strategic position to better serve existing and potential customers, the firm pointed out.

Daye produced 428,000 tons of bead steel for tires last year, accounting for over 38 percent of China’s total. Michelin, Goodyear, Continental, and Pirelli are among its main European and US clients, according to the company’s semiannual earnings report.

Editor: Futura Costaglione