(Yicai Global) Jan. 27 -- China's Hengdian Group DMEGC Magnetics, which claims to be the world's biggest permanent ferrite magnet supplier, managed to avoid the Shenzhen market decline after revealing its CNY3.9 billion (USD621 million) plan to expand its output via five new projects.

DMEGC's stock price [SHE: 002056] climbed to close 1.6 percent up at CNY15.94 (USD2.50). Meanwhile, the Shenzhen Component Index was 2.8 percent down.

The five projects involve ferrites, batteries, and solar power equipment, the Zhejiang province-based company said in a statement yesterday.

DMEGC is the world's largest supplier of soft and hard ferrite magnets, according to its website. The products are mainly used in home appliances, vehicles, telecommunications, and solar cells.

One of the projects will be able to produce 22,000 tons of permanent ferrite magnets per year. The related investment is CNY124 million (USD19.5 million) and the first phase of the project will be ready by August. Another undertaking is a soft ferrite plant which should make 15,000 tons of such ceramic-like material per year. The required investment is CNY513 million. The first phase will be done by September.

Moreover, the company intends to invest CNY1.1 billion to build an inductor factory with an annual output of 5.1 billion products to expand its business in the downstream coil market. The first part of the plan should be completed within one year.

Additionally, DMEGC will spend CNY1.8 billion to increase its lithium battery production capacity for electronic tools. The related annual capacity should be six gigawatt-hours. Finally, the firm said it will pour CNY339 million into boosting its photovoltaic equipment output by 2.5 GWh per year.

Editor: Emmi Laine, Xiao Yi