Mainboard-listed Hu An Cable Holdings, the wire and cable manufacturers in China, says it has started the construction of a new plant under newly-incorporated subsidiary, Hu An (Wuxi) Cable Technology Co., to strengthen its cable production capabilities.

The plant occupies a land area of 80,000 sqm and a floor space of 60,000 sqm. It is located adjacent to the group’s existing plant in Yixing city. The group has already placed the orders for two world-class production lines for ultra-high voltage power cables from Finland and Germany.

Costing RMB338 million ($67 million), the new plant will comprise three imported production lines of 110kV and above power cables from Finland and Germany and two domestic production lines of mid voltage power cables by the 3rd quarter of 2011.

The project will be financed using net proceeds from the company’s initial public offering with the balance from internal funds and bank borrowings.