(Yicai Global) Aug. 19 -- Chinese photoelectronics manufacturer SVG Tech Group plans to invest CNY1.8 billion (USD256 million) to set up a flexible touchscreen factory in Jiangsu.

The Suzhou-based firm's subsidiary iVtouch will set up a new company with CNY500 million in registered capital to build the plant at the Jiangsu Nantong Economic and Technological Development Zone, SVG said in a statement today. The factory will cover 70,000 square meters and is scheduled to enter operation in 2020 and reach peak capacity within five years.

Shares in SVG [SHE:300331] surged on the news, rising nearly 4.2 percent to CNY21.71 (USD3.08) throughout the day and beating China's primary benchmark, the Shanghai Composite Index, which climbed 2.1 percent.

Founded in 2001, SVG mainly engages in designing and making optical products using micro- and nanotechnology for anti-counterfeiting, packaging and in other fields. It owns 76.2 percent of iVtouch and has five factories in Jiangsu.

Editor: James Boynton