(Yicai Global) Nov. 15 -- Jiangnan Chemical Industry plans to stop production of nanometer cerium oxides, with an annual output of 200 tons, because the market is small and the technology has not matured enough after years of research and trials.

The company, headquartered in Ningguo, Anhui province, announced the project's termination and deregistering of Jiangnan Jingsheng New Material, the project firm, in a statement released yesterday evening. Its shares [SHE:002226] jumped 4.3 percent today to close at CNY5.60 (81 US cents).

Jiangnan Chemical set up the unit in 2012. A previous plan to invest CNY150 million (USD22 million) in a production line was dropped.

Cerium oxide derives from the rare-earth metal cerium and is used for polishing materials, catalysts, electrolytes of the fuel cells, ultraviolet and automobile exhaust absorbers, electronic ceramics and other items.

Editor: Bivash