HK Stock Market Move | TSUGAMI CHINA (01651) is now up more than 4%. The company is acquiring land to build factories and expand production capacity. Demand for high-precision CNC machine tools is increasing downstream.

TSUGAMI CHINA (01651) is now up more than 4%, as of the time of writing, up 4% to HK$19.24, with a turnover of HK$12.71 million. In terms of news, TSUGAMI CHINA previously announced that its wholly-owned subsidiary, Jingu Precision Machine Tool (Zhejiang) Co., Ltd., has reached an agreement with the Pinghu Economic and Technological Development Zone Management Committee to acquire the adjacent plot of land of the company's fourth factory located in the Pinghu Economic and Technological Development Zone through public auction. In order to increase the company's production capacity, a new production factory will be built on this land, and the new facilities will help the company meet the increasing demand for CNC high-precision machine tools brought about by the rapid development of downstream industries such as automotive, Siasun Robot & Automation, and artificial intelligence. Northeast recently released a research report stating that in the production of Siasun Robot & Automation, tools such as milling cutters, taps, and reamers are used in the processing of core components such as gearboxes, ball screws, gears, and bearings. Grinders and lathes are used in the core component machining process of ball screws, while vertical machining centers and gantry machining centers are used in the machining process of main machine general components. In the future, the large-scale production of Siasun Robot & Automation is expected to bring additional incremental business to machine tool companies, with immense potential for growth.