Foton Motor to sell extra shares to fund tech upgrade

Commercial vehicle producer Beiqi Foton Motor Co plans to raise 2.5 billion yuan (US$367 million) through selling additional shares to fund technology upgrades on its heavy duty trucks.

The affiliate of Beijing Automotive Industry Group plans to sell not more than 160 million shares at 17.76 yuan each, according to its statement to the Shanghai Stock Exchange yesterday.

The proceeds would be used to buy equipment in Foton's 2.08 billion yuan plant in Huairou district in Beijing, which is set to produce new GTL pickups and Ouman branded heavy duty trucks with an annual output of 60,000 units.

Part of the money will also be invested to improve spare parts and assembly lines for Ouman branded heavy duty trucks in another factory in Beijing. The plant would be able to make 60,000 units of the Ouman trucks when the upgrade is completed in three years.