Chisen Electric Corp. announced that it has signed a series of agreements with local government officials, which provide relocation funding from the government for moving all current production within a year at its oldest plant (Plant A) at Jingyi Road in Changxing County to its nearby (1.5 km) Plant B where the company also has been manufacturing lead-acid batteries since 2008. Additional funds from the local government for compensation of the relocation of Plant A also are being provided for the construction of a new plant, Plant C, roughly 3km away that will be approximately 50% larger than Plant A.
The company reported that the combined operations in Plant B will have the capacity to meet current as well as anticipated future growth needs stemming from strong market demand for its lead-acid motive batteries. Most significantly, Plant C, which is expected to be completed within two years, will house a new business thrust for the company – the production and sale of lithium ion batteries, primarily for powering motors in a variety of vehicles. It is anticipated that the cost of Plant C will be paid for by proceeds of the government compensation it is receiving for the removal of its investment from Plant A as well as direct government stipends for funds advanced by the company.