(Yicai Global) Aug. 23 -- Hengxing Science & Technology’s shares surged by the daily limit to the highest in more than three and a half years after the Chinese maker of diamond wires set out plans to increase capacity to meet fast-growing demand from solar power companies.

Hengxing Science [SHE:002132] climbed 10 percent today to close at CNY5.31 (82 US cents), valuing the Henan province-based company at CNY6.07 billion (USD936 million). The stock has gained more than 60 percent so far this year.

Hengxing Science will invest CNY223 million (USD34.4 million) to increase capacity by 10 million kilometers by buying new devices and upgrading equipment and technology, the producer of high-precision diamond wires said in a statement yesterday.

The expansion will boost sales by CNY389 million a year and is scheduled to take 12 months to complete, the firm said.

Demand for diamond wires, which are mainly used to cut crystalline silicon wafers in the photovoltaic sector, is expected to go on surging.

The world’s newly added installed solar energy capacity will range from 210 gigawatts to 260 GW in each of the next five years, according to the China Photovoltaic Industry Association, with China’s between 70 GW and 90 GW a year.

Editor: Tom Litting