(Yicai) Nov. 11 -- Shares of Xinpeng Industry surged by their daily trading limit after the Chinese supplier of metal parts for electromechanical products said it has linked arms with US manufacturing services firm Jabil to invest USD15 million in a medium to large-sized enclosures for battery energy storage systems joint venture factory in Thailand.

Xinpeng [SHE: 002328] ended up 10 percent at CNY7.50 (USD1.05) a share today. The broader Shenzhen market fell 1 percent. 

Xinpeng's Thai subsidiary has signed an agreement with Jabil to set up the JV plant at its production base in Rayong, the Shanghai-based parent company announced late yesterday. Debugging of the equipment and sample production are expected to be achieved by the end of next year, with mass production likely by 2027, it added.

Xinpeng's unit will be responsible for building the JV plant's infrastructure and supply of production gear, while Jabil will provide product design and manufacturing processes and raise funds for buying specialized equipment, the Chinese firm said, without disclosing the shareholding ratio.

Xinpeng will form a strategic alliance with Jabil via this project, aiming to provide global battery energy storage system suppliers with top medium to large-sized enclosure components and comprehensive solutions from design to production, it pointed out.

In addition, collaborating on this project at Xinpeng's production base in Thailand will accelerate the company's overseas business expansion and help it accumulate design and manufacturing capabilities for energy storage product parts, according to the firm.

Editor: Martin Kadiev