Yunnan Yuntianhua's (SHA:600096) unit, Chongqing Yuntianhua Tianju New Materials, plans to invest 1.86 billion yuan to construct a high-end copolymer POM or polyoxymethylene resin plant, according to a Shanghai bourse filing on Saturday.

The high-quality diammonium phosphate supplier's shares rose 2% during Monday's afternoon trade.

The plant will produce 100,000 tons of copolymer POM annually. It will also have units with an annual production capacity of 240,000 tons of formaldehyde, 400 tons of methylal, and 100 tons of catalyst.

Construction of the project, which will be located in the Chongqing Changshou Economic and Technological Development Zone in China, is expected to begin in December.