KUALA LUMPUR (Oct 22): Shenzhen-listed Kedali Industry Co Ltd said on Monday that it will invest 600 million yuan (RM364.5 million) to construct a lithium battery precision structural parts plant in Kedah.

According to the announcement, Kedali said the project involves construction of factory buildings and installations of advanced equipment, taking 36 months to complete.

Upon full production, annual output value will be about 1.3 billion yuan (RM789 million), the announcement read.

Kedali is one of China's manufacturers of battery precision structural parts, widely used in automobiles and new energy vehicles, power batteries, portable communication electronic products, power tools and energy storage power stations.

The setting up of a production base in Malaysia is part of the company's strategic global development plan to launch more business opportunities in Southeast Asia, it said.

Earlier In May, the company said it would invest US$49 million to build a factory to produce precision structural components for power and energy storage batteries in Indiana, US.

Aside from the new additions in Malaysia and the US, Kedali operates plants in Germany, Hungary and Sweden. Some of its customers include CATL, Tesla, Panasonic, Northvolt, LG, Samsung, EVE Energy and Xinwanda.

For its Malaysia investment, Kedali said its wholly-owned subsidiary, Kedali Hungary Kft, together with a newly established wholly-owned subsidiary in Singapore, will jointly invest in a project company in Malaysia.

For the financial year ending Dec 31, 2023, Kedali reported a revenue of 10.51 billion yuan and net profit of CNY1.21 billion. In the first half of 2024, the battery parts maker recorded revenue of 5.45 billion yuan and net profit of 657.3 million yuan.

Based on its closing price on Tuesday, the company had a market capitalisation of 26.59 billion yuan.