(Yicai Global) Sept. 21 -- Hagong Intelligent Robot will team up with South Korean giant Hyundai Heavy Industries to set up an industrial robot joint venture in China, following three months of negotiations and preparation.

The pair has inked a letter of intent to invest a total of CNY200 million in the JV which will produce and sell industrial robots as well as provide after-sales services, the Jiangsu-province firm said in a statement.

Hagong will contribute CNY140 million giving it a 70 percent stake, while Hyundai will provide CNY60 million and take the remainder. The two sides will set up a team soon to arrange the implementation of the project.

The JV will be built in accordance with the capacity scale of Hyundai's Daegu plant in South Korea and in line with its smart factory standards.

Hagong first announced plans in mid-June to work with Hyundai on robotics for the Chinese market.

Editor: William Clegg