(Yicai Global) Oct. 30 -- JL MAG Rare-Earth will spend CNY575 million (USD85.9 million) to construct a plant in northern China to produce high-end rare-earth magnets used in wind turbines, air conditioners, and new energy vehicles.

The company will locate the factory in the Baotou National Rare Earth High and New Technology Industrial Development Zone, the Jiangxi province-based firm said in a statement yesterday. Construction will take two years after which the plant's annual output will be 8,000 tons of permanent magnets.

The project will improve JL MAG's rare-earth supply to hike its production capacity in order to meet the rising demand in the downstream market, it added.

Inner Mongolia's Baotou is rich in light rare-earth elements while the company's home province has heavier, less common ones.

JL MAG's stock price [SHE:300748] fell 1.1 percent to CNY38.63 (USD5.80) in the afternoon.

Editor: Emmi Laine