SANY Heavy Industry Co (stock code: 600031), China's biggest maker of pumps for concrete, will sell bonds for the first time.

The aim is to finance expansion of its production capacity for pump, drilling and road-maintenance equipment to meet growing demand.

The 500-million-yuan (US$65.83-million) bonds will be sold to domestic institutional investors under approval from the National Development and Reform Commission, China's top planning body, the company said in a statement yesterday to the Shanghai Stock Exchange.

The money will be used to finance construction of three new plants in Changsha, Hunan Province, for production of trucks that carry and pump concrete and road-maintenance equipment, as well as for expansion of an existing production facility for drilling equipment in Beijing.

Sany said in the statement these products will be in great demand in years to come, citing China's ambitious plans to boost its infrastructure construction.

It believes the proportion of concrete shipped by truck to construction sites in China will triple by 2010 to 30 percent.

The company plans to more than double its annual production of this product to 1,500 from the current 700 by 2010 with the new plant.

The company forecast that the four projects will add more than five billion yuan worth of sales when they are operational. Its revenue last year was 4.57 billion yuan.

Sany Heavy, based in Changsha, has already borrowed five billion yuan from the China Development Bank in December to finance overseas acquisitions, after losing to United States buyout firm Carlyle Group in seeking control of the Xugong Group Construction Machinery Co, China's largest crane and road-roller maker.

Its parent, Sany Group, recently said it has no plans to set up a joint venture or sell a stake to Caterpillar Inc, rejecting speculation of a capital tie-up.