Cenntro Electric (NASDAQ:CENN) stock is rising higher on Monday following the reveal of expansion plans from the electric vehicle (EV) tech company.
Cenntro Electric announced late on Friday its acquisition of a new manufacturing facility in Changxing, Huzhou City, China. The facility is 474,000 square feet in size and will give CENN more room to expand production.
The EV tech company bought the facility to the tune of $19.5 million. This location was built in 2018 and already comes equipped with advanced manufacturing capabilities. In addition to that, CENN expects the acquisition to make it eligible for ISO 9000 certification.
According to Cenntro Electric, this facility is expected to be up and running for a trial run in the third quarter of 2022. When it reaches full production, it should be able to produce as many as 50,000 EVs a year.
Cenntro Electric already knows exactly what it plans to build at the factory as well. It plans to handle the production of a new EV under its Metro brand at the location. The company hasn’t provided any further details about this new EV.
Peter Wang, chairman and CEO of Cenntro Electric, said this about today’s news.
“This is a critical acquisition for Cenntro. The new facility will allow us to expand and respond to the growing demand for our products, especially as we begin distributing into new markets.”
CENN stock is up 3.4% as of Monday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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