(Yicai Global) Aug. 18 -- Guanglian Aviation Industry, a firm that has provided China's first large homemade aircraft with parts, intends to spend CNY300 million (USD44.2 million) on increasing its drone output.

Guanglian plans to sign a construction agreement with a local government in Zigong, Sichuan province, for the project, the Harbin-based company said in a statement yesterday.

The northeastern Chinese manufacturer is renowned as it supplies composite and metal structure parts to China's first self-developed large passenger aircraft, the C919, developed by Commercial Aircraft Corp. of China. But in recent years, Guanglian has made inroads into large-scale unmanned aircraft production. It started mass-producing drones in 2018.

The new plant, which is built on a lot with an area of 57,500 square meters, should be able to deliver over CNY100 million of sales revenue each year. It is expected to create more than 100 local jobs, and generate more than CNY18.5 million (USD2.7 million) of tax revenue for the local government, according to Guanglian. Trial production should begin in 12 to 18 months after Guanglian obtains land use rights, it said, without disclosing details about product types or output.

The project will enhance Guanglian's prowess in making drones, as well as in smart manufacturing, it said, adding that the plant should increase the firm's synergies in several business segments.

Guanglian's stock price [SHE: 300900] closed up 0.2 percent at CNY30.09 (USD4.40) after rising as much as 1.8 percent intraday. The shares are still down by more than a third in value in the past 12 months.

Editor: Emmi Laine, Xiao Yi