Changyu (SHA:603407) will extend a credit facility of up to 70 million yuan to indirect subsidiary Shandong Guangyin Dikaikai New Materials, according to a Wednesday filing with the Shanghai bourse.
The loan has a term of five years and an interest rate based on the one-year loan prime rate and will not be lower than the company's overall debt financing cost.
Proceeds will help fund a nano-composite zirconia high-performance ceramic production facility with a capacity of 1,000 tons per year.
The company will also add two high-end nano-composite zirconia powder production lines, as well as supporting production lines for bioceramics, functional ceramics, and electronic ceramics for dental care, new energy storage, semiconductors, and precision industrial components.
The chemical company's shares rose 7% during afternoon trading on Wednesday.