(Yicai Global) Jan. 7 -- Jiangsu Hagong Intelligent Robot plans to set up a second new company in Haining, Zhejiang province, to take advantage of preferential policies it has access to as part of an agreement with the local government.
The subsidiary, with registered capital of CNY200 million (USD29 million), will design and build welding robots and other equipment and devices, the Shanghai-based firm said in a statement today.
Hagong penned a deal with the Haining government in November that granted it undisclosed preferential treatment if it invested in projects in the city. The new unit will be its second foray into Haining since the agreement.
The firm struck up a pact with South Korean industrial giant Hyundai Heavy Industries in December to set up a joint venture there. Hagong paid CNY140 million for a 70 percent stake in the company, which hopes to produce 10,000 robots a year by 2020, according to local news reports.
Hagong's statement did not disclose how, if at all, the new unit will work with the joint venture, simply saying its latest addition will collaborate with local companies to create an industry cluster and enhance its own smart manufacturing solutions.
Editor: James Boynton