August 4 -- China Erzhong Group (Deyang) Heavy Industries (601268) received approval from China’s Securities Regulatory Commission (CSRC) to issue shares via private placement, reports yicai.com, citing a company filing.

According to an earlier filing, the company plans to issue 400 million shares to raise 4.077 billion yuan. Parent company China National Erzhong Group plans to subscribe between one billion yuan and 2.5 billion yuan worth of shares, of which 995 million yuan will be paid with creditors’ rights.

Erzhong Group will use the funds raised to adjust its product structure and improve production efficiency. It will also upgrade the energy-saving technology its facilities use to produce large castings, construct a heavy equipment base at an outgoing sea port, and upgrade technology at its nuclear casting facilities.

Erzhong Group was founded in 2001 in Deyang city, Sichuan province. It offers large-size castings used in clean energy power generation.

Its net profit totaled 15.5 million yuan in the first quarter of 2011.