Keda Industrial (SHA:600499) plans to invest 4.50 billion yuan into the construction of an integrated graphite anode material production base, according to a Shanghai bourse filing on Tuesday.

The production base will be located in Baotou City, Inner Mongolia and the construction period will run for 10 to 12 months. The plant will produce 500,000 tons of graphite anode per year.

The Chinese ceramic machinery and building materials maker plans to sign a cooperation agreement with the local government of Tumed Right Banner to be able to buy land and obtain the resources needed for the project.

The company's shares dropped 10% during the afternoon trade.