Shanghai Huafon Aluminium (SHA:601702) revised its investment plan for a high-end aluminum sheet and foil project, increasing production capacity to 450,000 tons and total investment to 2.62 billion yuan to meet growing demand in the new energy vehicle sector.

The updated plan expands production to include 300,000 tons of hot-rolled aluminum sheets and 150,000 tons of high-end aluminum products for NEVs and other applications, according to a Friday filing with the Shanghai bourse.

The project, located in Chongqing's Fuling District in China, will now cover an additional 500 mu and feature advanced equipment like hot-rolling and cold-rolling mills.

The revised project is expected to achieve a post-tax payback period of 5.4 years.

Shares of Shanghai Huafon Aluminium rose 3% in recent trade.