(Yicai Global) Sept. 3 -- Chinese tiremaker Sailun Jinyu Group plans to team up with state-owned car manufacturer FAW Group to build a testing site for smart connected vehicles in Shandong province as the pair look to accelerate the introduction of artificial intelligence into the auto industry.

Sailun and its subsidiary Guangrao Saiya Tyres Detection penned a 20-year memorandum of cooperation with FAW Group on Aug. 31, the parent said in a statement. The deal will see Sailun and FAW invest in the subsidiary to give it CNY100 million (USD14.7 million) in registered capital, with FAW taking a majority stake, and then Saiya will transform its tire testing site in Dongying city into a facility for intelligent connected vehicles.

The firm did not disclose construction details.

Once up and running, the site will be used to find new automotive applications for artificial intelligence and developing related technologies, the statement said. It will also be used for vehicle and tire tests and demonstration operations for its shareholders and third-party companies from at home and abroad.

Editor: James Boynton