August 25 -- China Fangda Group (000055), a new materials manufacturer, announced on August 24 that it plans to invest one billion yuan to set up a western China manufacturing base in Chengdu New Material Industry Park, reports yicai.com, citing the company’s announcement.

Fangda Group plans to construct production facilities for environmentally-friendly walls and materials, urban railway equipment and semiconductor lightings at the Chengdu site. 

Fangda Group has already set up manufacturing facilities in northeast, northern, central and southern regions of China.

Fangda Group cited reduction of production costs as a reason for the new facilties. Its location in western China means it will be eligible for preferential policies, and will benefit from low-cost labor and an adequate supply of raw materials.

Shares of Fangda Group went up 9.94 percent to close at 5.97 yuan today.