December 19 -- Nylon filament producer Yiwu Huading Nylon (601113.SH) plans to inject 630 million yuan of its self-owned funds to construct a differentiated nylon filament yarn production base, reports Securities Times, citing a company filing.

The new nylon filament yarn production base will be built on a 84,500 square meters plot of land owned by the company in Yiwu’s Suxi Industrial Park.

With a two-year construction period, the annual production capacity of the base will hit 50,000 tons of differentiated nylon filament yarn.

It is expected to contribute annual revenue of about 1.5 billion yuan and increase profits by approximately 120 million yuan upon the completion of construction.

The investment is projected to have a payback period of about six to seven years.

According to the company, the cost of the investment could be affected by fluctuations in labor and raw material prices.

Shares of the company were up 0.1 percent to trade at 10.27 per share at 10:15 today.