(Yicai Global) Aug 23 -- Fosun International will build the global headquarters of the holding of the FFT Group, a German automation solutions provider, in Shanghai's Jiading district to boost the development of the area known for its car factories. Fosun and Jiading will also set up an investment fund for smart manufacturing projects.

Fosun and the local administration of Jiading penned a cooperation agreement yesterday to advance the transformation of the district into an intelligent manufacturing hub, The Paper reported. The new fund will finance high-tech projects in the area.

In May, the Shanghai-based conglomerate acquired Fulda-based FFT, without specifying the amount paid. Founded in 1974, FFT counts Daimler, BMW, and Boeing as some of its clients. Last year, the company made EUR750 million (USD830.3 million) in operating income, doubling the number of newly added contracts in the Chinese market. It had more than 2,800 employees.

FFT will help upgrade the local manufacturing sector, Chairman Guo Guangchang told The Paper. In three years, Fosun's automation business will become a Shanghai-based world-class smart manufacturing group with its annual revenue rising above CNY10 billion (USD1.4 billion), Guo added.

Fosun will leverage FFT's world-leading automation technology to promote industry upgrades, as well as helping Fosun's portfolio companies, such as steel product firm Nangang Iron & Steel United and battery maker JEVE, boost their smart manufacturing prowess, the firm said after completing the acquisition.

Fosun's [HK: 0656] share price rose 1.9 percent to HKD9.70 (USD1.24) in the afternoon.

Editor: Emmi Laine