Zhitong Financial App News, International Precision (00929) announced that on August 22, 2023, Jiangsu Keda (an indirect wholly-owned subsidiary of the company) signed a construction contract with the contractor (China Construction Fourth Bureau Installation Engineering Co., Ltd.). The contractor agreed to carry out the construction of the plant and other supporting facilities. The total contract price was RMB 66.66 million.
According to reports, the plant will be located in Plant No. 6, Dongzhou Road, Changshu Economic and Technological Development Zone, Jiangsu Province, China, with a total floor area of about 29,000 square meters. The construction project is expected to be completed within 285 days after construction.
The announcement stated that the group plans to purchase additional equipment to expand its current production capacity for automotive parts. However, space was limited at the company's two bases, so there was no room to install new equipment. In view of this, in order to expand the Group's overall production capacity, it is necessary to build new production facilities. This will help the Group meet the potential growth in customer demand and successfully expand its product portfolio as planned. The construction of the plant is in line with the Group's overall strategy and is conducive to the long-term business development of its automotive and CNC lathe division.