(Yicai Global) Oct. 29 -- Swiss-Swedish industrial service provider ABB plans to acquire 67 percent of Shanghai Chargedot New Energy Technology, a leading Chinese supplier of electric vehicle charging solutions, and build on the stake over the next three years.

The Zurich-based firm should complete the deal within the next few months, it said in a statement yesterday without disclosing the financial details or the post-purchase shareholding structure of the target.

"With China forging ahead in the development of a comprehensive e-mobility ecosystem, this acquisition will give ABB a significant role in delivering growth, working closely with SAIC and other leading Chinese car manufacturers," said Tarak Mehta, president of ABB's electrification business.

There are now 2 million electric vehicle owners in China, the world's largest market for EVs and vehicles overall, thanks to support from government incentives, according to a recent report by Grand View Research.

ABB has been working in China with local manufacturer BYD and Germany's Daimler since 2016, providing direct current charging piles for cars made under their joint venture Denza. It also produces fast-charging solutions for Nio, an up-and-coming EV maker pegged as the Chinese Tesla.

Founded in 2009, Lianzhu supplies peripheral charging products for renowned domestic carmakers, such as SAIC Motor, Beiqi New Energy and Dongfeng Nissan. It also provides customized solutions for charging service operators and sells smart charging equipment and management systems for new-energy vehicle rental firms.

The target, part-owned by an SAIC subsidiary, is currently building a production base in Zhejiang province. It plans to build 400,000 charging piles a year after the first phase of construction before boosting output to a million units per annum, making it the largest such factory in the country.

Editor: James Boynton