(Yicai Global) Nov. 2 -- Shares of Shida Shenghua Chemical Group failed to get a boost from the announcement that the Chinese organic chemicals maker plans to invest about CNY1 billion (USD156 million) to expand production of liquid electrolytes for lithium batteries.

Shida Shenghua [SHA:603026] finished 6.6 percent lower today at CNY220.99 (USD34.54), after plunging as much as 8.8 percent. It had opened the morning session up 2.6 percent.

The benchmark Shanghai Composite Index fell 1.1 percent.

The new project will boost the annual capacity at its Wuhan-based plant to 220,000 tons of four types of carbonate products, which are chemical components for liquid electrolytes for lithium batteries, according to the investment framework agreement with Wuhan Chemical Industrial Park Management Committee that the firm released yesterday.

As a leading supplier of liquid electrolyte raw materials, Shandong province-based Shida Shenghua is actively expanding production capacity to meet surging demand for carbonate products as battery electrolyte solvents.

Shida Shenghua also announced yesterday the completion of its new plant in Quanzhou city. The CNY794 million (USD124 million) project, which can produce 220,000 tons of four kinds of carbonate products a year, will start trial output soon, it said. The plant is expected to boost its that to 440,000 tons in future, per a 2019 investment plan.

Editor: Futura Costaglione