(Yicai Global) Jan. 22 -- Reinventing Fire Technology, a major Chinese fuel cell system manufacturer, will construct a plant that produces complete hydrogen fuel cell vehicles and parts in southern Chinese Guangdong province.

Reinventing Fire, also known as Re-Fire, penned an agreement with the Nanhai district government in the city of Foshan on Jan. 19 regarding the CNY2 billion (USD294.5 million) project, the Shanghai-based firm posted on its WeChat social media account.

The initial investment of CNY2.2 billion will be used for building a research and development base for hydrogen fuel cells, systems and parts. The plant will have an annual output value of CNY15 billion.

Foshan has attracted other hydrogen businesses too. In 2017, Hangzhou's Changjiang Automobile decided to construct a new energy vehicle plant in Nanhai, and Hong Kong billionaire Li Ka-shing was one of the investors. The factory will make 160,000 NEVs including hydrogen fuel cell cars each year.

"Nanhai district has developed a complete industrial chain for hydrogen vehicle production that supports the local energy industry, Gu Yaohui, the head of Nanhai district government, said at Re-Fire's signing ceremony. One reason for the allure is that while subsidies for other NEVs have diminished, hydrogen businesses still enjoy ample government support.

Editor: Emmi Laine