Nov. 26 (Bloomberg) -- Ningxia Yinxing Energy Co., a Chinese maker of industrial equipment, rose the most in 10 weeks on plans to set up a joint venture to produce gearboxes for wind turbines.
Ningxia jumped by the daily limit of 10 percent, the biggest increase since Sept. 17, to 16.27 yuan, and was traded at 16.01 yuan at 11:09 a.m. local time in Shenzhen, compared with a 0.04 percent fall of the benchmark Shenzhen Composite Index.
Ningxia, together with Japanese companies Nomura Trading Co. and Ishibashi Gihann and Yinchuan Heavy Reduction Gear Co., another Chinese equipment maker, will invest a total of 50 million yuan ($7.5 million) in the joint venture, Ningxia said in a statement to the Shenzhen Stock Exchange.
The joint venture, Ishibashi Gearbox (Yinchuan) Co., will produce gearboxes for wind turbines that have a capacity of 1 megawatt to 2.5 megawatts, Ningxia said. The move is intended to help Ningxia provide components for its own turbines that use technology licensed from Mitsubishi Heavy Industries Ltd.
Ningxia will invest 11.25 million yuan for a 45 percent stake in Ishibashi Gearbox. Ishibashi Gihann will have a 35 percent stake, Nomura Trading 15 percent and Yinchuan Heavy 5 percent.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at Fshen11@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org.