Jiangsu Yawei Machine Tool (SHE:002559) subsidiary Jiangsu Yawei Technology Investment signed a cooperation agreement that aims to support its steady growth, strengthen its market position and boost its market value.

The agreement is also aimed at advancing the development of the high-end equipment manufacturing cluster in Yangzhou city in China's Jiangsu province, according to a Tuesday filing with the Shenzhen bourse.

Under the agreement signed with Yangzhou Industrial Investment Development Group and other parties, the company plans to issue 128,235,074 of its A shares to Yangzhou Industrial Group, making it a controlling shareholder.

The company produces computerized numerical control press brakes and laser cutting machines. Its shares closed 2% higher Tuesday.