(Yicai Global) Feb. 7 -- China's Forbon Technology, which makes additives for fertilizer, plans to set up a joint venture with Netherlands-based robotics firm Alsys International to bring soil testing bots to China as it looks to expand its digital business.

Forbon subsidiary Wuhan Kemai System Engineering will pay just over EUR1 million (USD1.1 million) for a 51 percent stake and Alsys will pick up the remainder, Hubei-headquartered Forborn said in a statement yesterday. Under the agreement, Alsys will license the joint venture to use its intellectual property, trademarks and other intangible assets in China without restriction.

Alsys's advanced soil detection technology will aid Forbon's efforts to transform into a digital service provider in the agricultural industry and extend its reach along the industry chain, it added.

The deal failed to spark investor interest in Forbon, which is based in the province at the epicenter of the recent novel coronavirus outbreak. Its share price [SHE:300387] slumped 3.4 percent to close at CNY8.48 (USD1.21). The benchmark Shenzhen Component Index finished up less than 0.01 percent.

The robots the joint venture will make, all in China, can complete continuous real-time soil testing to allow for 24-hour evaluation of farmlands. The new firm will also sell Alsys products in China.

Editor: James Boynton