Sany Heavy Industry Co. surged to its highest level in more than two years Friday after the Chinese construction machinery maker confirmed it’s exploring opportunities in the defense industry.
The Changsha-based company was up by as much as 8.5 percent to its highest level since February 2013, before closing up 3.3 percent at 12.08 yuan in Shanghai trading. The benchmark Shanghai Composite Index finished up 2.8 percent.
In an exchange filing Thursday, Sany Heavy said it has started a defense industry department and is in the process of investigating and doing research to gauge its feasibility.
“Currently, our company has not obtained a license to produce defense-related products,” it said in the filing. “We will disclose if we make any breakthrough in our defense industry segment.”
The Securities Times newspaper reported Friday that Sany is applying for a license as a military equipment producer, citing board director Zhao Xiangzhang.
— With assistance by Clement Tan