(Yicai Global) Nov. 26 -- Shares of China's Chervon Auto Precision Technology rose after the firm said it is likely to gain CNY550 million (USD86 million) by making electric vehicle parts for the parent of Mercedes-Benz.

Chervon's stock price [SHA: 603982] jumped as much as 10 percent to CNY39.75 (USD6.20) intraday. The shares have almost doubled in value this year.

The supplier will provide Valeo Siemens eAutomotive, a joint venture between French car parts maker Valeo and Germany's Siemens, with electromotor shells to be installed in Daimler electric vehicles, the Nanjing-based seller said in a statement yesterday. The agreement lasts for three years.

The size of orders will be decided after Daimler's new facility begins mass production, the statement added.

Chervon produces automotive heat exchangers, transmission and engine systems, as well as brake and steering system components, per its website.

Editor: Emmi Laine, Xiao Yi