Shandong Longji Machinery intends to issue 30 million shares in its initial public offering (IPO) on the Shenzhen Stock Exchange, reports China Securities Journal, citing the company's prospectus.

Proceeds raised through the IPO will be invested into a brake drum project with an annual production capacity of two million units.

Shandong Longji Machinery is one of the largest manufacturers of parts for car brakes in China. It has an annual production capacity of 7.5 million units of brake rotors and one million units of heavy duty drums.

The companies supplies brake parts to Dongfeng Dana Axle, CNHTC Jinan Truck (000951). Half of its products are exported.

Net profit in 2008 and 2009 were 53.16 million yuan and 60.72 million yuan respectively.

Shandong Longji Machinery expects to record revenue of 1.5 billion yuan within the next two to three years. In the same time period, it expects to increase its production capacity to 12 million units of brake rotors and 1.2 million units of heavy duty drums.