(Yicai Global) May 8 -- Huizhou Desay SV Automotive is spending CNY3.2 billion (USD462.6 million) to construct a production base for autonomous driving equipment in Chengdu, southwestern Sichuan province as the Chinese supplier of smart driving hardware and software prepares to meet surging demand in the auto industry.

The facility will consist of a research and development center and a manufacturing base, and will mainly focus on radars, cameras and intelligent driving systems for smart cars as well as the center control hardware and smart interaction systems for smart cockpits, the Huizhou, southern Guangdong province-based company said yesterday.

The plant will be built in two phases over a 33-month period, it said, citing the deal signed with the Chengdu Economic & Technological Development Zone's management committee on May 5. The first phase will produce one million products a year and the second phase 1.2 million pieces. The factory should reach full capacity four years after starting production.

Desay's smart driving business is booming, thanks to strong demand in the auto industry for its products. Last year it won new orders worth CNY20 billion (USD2.9 billion) from clients including auto giants Volkswagen, Toyota Motor, Stellantis and Lexus, according to its annual results published in March.

Desay's net profit surged 42.1 percent last year from 2021 while revenue jumped 56 percent, However, growth slowed in the first quarter, with net profit advancing 3.9 percent and revenue increasing 26.8 percent.

Desay's share price [SHE:002920] closed down 0.46 percent at CNY99.38 (USD14.36) apiece today.

Editor: Kim Taylor