Shares of Kedali Industry rose after the Chinese maker of precision structural parts for power batteries said it plans to invest up to EUR50 million (USD57.5 million) to expand the production capacity of its factory in Hungary.

Kedali [SHE: 002850] closed 2.1 percent higher at CNY110.81 (USD15.41) a share today. The broader Shenzhen market rose 0.4 percent.

Kedali will invest in the third phase of its project in Gödöllő, the Shenzhen-based company announced late on June 20. The new plant will make square and cylindrical precision structural parts for power batteries, with an estimated construction period of about 24 months, it added.

The project will likely bring around EUR100 million (USD110 million) a year to Kedali after reaching full production capacity, the company noted, adding that the expansion will better meet overseas customers' demand and accelerate its global business expansion.

Kedali completed the first phase of the Hungarian factory in 2021, with its core precision structural components for lithium batteries primarily supplied to Samsung Group's battery plant in the region. The second phase commenced construction in 2022 and will likely go live this year.

In addition, customers of Kedali's plant in Hungary include the local factory of China's Contemporary Amperex Technology, the world's biggest maker of electric vehicle batteries, as well as other overseas clients such as Tesla, Panasonic Holdings, Automotive Cells Company, and LG Group.

Kedali also has a plant making precision structural components for lithium batteries in Germany. Last May, it revealed plans to build a new factory in Indiana for USD49 million.

Kedali's revenue from structural components for lithium batteries was CNY11.5 billion (USD1.6 billion) last year, accounting for over 95 percent of its total income, according to its annual financial report. That from overseas markets topped CNY574 million (USD79.9 million).