(Yicai) March 18 -- Shares in Jiangsu Pacific Precision Forging surged to a three-and-a-half-year high today after the leading Chinese automotive gears supplier said that it is teaming up with Tianjin Armsun Automation Technology, a provider of industrial robot system integration services, to set up a joint venture for the research and production of core components for humanoid robots.

Pacific Precision’s share price [SHE: 300258] closed up 1.3 percent at CNY15.89 (USD2.19) today, the highest point since November 2021. Since hitting a multi-year low in September last year, the stock has gained 140 percent in value thanks to the company's active involvement in the robot parts business.

Pacific Precision is joining forces with Armsun, which works with some of the world’s biggest robotics firms such as Fanuc, Denso and Nachi, to form a JV with a registered capital of CNY100 million (USD14.5 million), the Taizhou-based firm said yesterday. Pacific Precision will hold a 90 percent stake, while Armsun will own 10 percent.

The JV will engage in the development of android core components such as robot joints, control motor drive systems and precision reducers and it will also focus on expanding its share of the market, said Pacific Precision, which specializes in auto forging gears and other precision forgings for vehicle manufacturers. However, no details were given regarding the planned annual output or other specifics.

Armsun will offer exclusive technical support for the robot components and help with the planning and construction of the JV's smart workshops and factories. The Tianjin-based company will also assist with providing skilled talent and market support.

The tie-up will help Pacific Precision accelerate the commercialization and industrialization of its core components for humanoid robots, as well as promote balanced and efficient growth across the firm's various business segments, it added. Androids and their core components are becoming an investment hotspot in the Chinese capital markets.

Editor: Kim Taylor