(Yicai Global) Aug. 19 -- Guangzhou Tinci Materials Technology will build a lithium battery electrolyte plant with an annual capacity of 100,000 tons for CNY275 million (USD39.6 million) in the Czech Republic to achieve "close-by supply" to its key customers, the firm announced yesterday.

The firm’s stock [SHE:002709] was up 0.15 percent at CNY41.08 (USD5.92) in the early afternoon.

The factory, which will go up in Bohumin, will have a construction period of 18 months, and the lithium battery material supplier’s wholly-owned local subsidiary Tinci Materials Technology Czech will oversee its construction, per the announcement.

The facility will generate CNY1.2 billion (USD173.4 million) in operating revenue a year and CNY177 million in net profit, the announcement added.

The plant will meet Europe’s demand for power battery electrolyte and help the firm seize market opportunities, the announcement noted, without mentioning its major European customers’ names.

Tinci Materials has four lithium battery electrolyte plants in China with a combined annual output of 50,000 tons and has been expanding its power lithium battery electrolyte capacity in recent years. The firm will build a new lithium battery electrolyte plant with an annual capacity of 100,000 tons for CNY289 million in Ningde, Fujian province where the country’s lithium battery giant Contemporary Amperex Technology is based and its major production center is, the firm said in April.

The company is also erecting a manufacturing base in East China’s Jiangsu province, and that complex is expected to produce 200,000 tons of lithium battery electrolyte a year, public data show.

Editor: Ben Armour