(Yicai) Nov. 4 -- Dassault Systemes has established a new joint venture in China with a local architectural design institute to accelerate digital transformation in the urban construction industry, marking a key initiative under the French software giant's fresh chief executive this year.

Pascal Daloz, who assumed office in January, recently visited Zhongda Digital Technology in Wuhan during his first China trip. The Velizy-Villacoublay-headquartered maker of 3D design software and the Central South Architectural Design Institute opened Zhongda on Nov. 1.

Founded in 1952, the CSADI is one of the six major regional architectural design institutes in China, with projects in nearly 40 countries around the world.

Daloz said that Dassault will continue to invest strongly in China and is committed to establishing new industry standards.

The market opportunity is substantial. China's investment in construction informatization equals less than 0.1 percent of the total value of the construction industry, far lower than the around 1 percent share of developed countries in Europe and America, Daloz said. The gross output value of China's construction industry reached CNY31.6 trillion (USD4.46 trillion) last year, per official data.

The JV partners will focus on developing urban solutions for lifecycle management using Dassault Systemes' 3DExperience platform for engineering and innovation management, driving technological transformation. They will also develop talent and export China's smart city solutions.

While Dassault will contribute its technology and research and development environment, the design institute will provide customer resources. The parties, which have collaborated since 2016, will complement each other's strengths, coordinate resources, and adapt Dassault's software to local requirements.

Digital transformation is the only way to address the challenges of data fragmentation and complex digital delivery in the construction industry, said Yang Jianhua, chairman of the CSADI.

China has significant growth potential in sectors such as new energy, electric vehicles, and biomedicine, areas where Dassault has recently expanded its presence, said Zhang Ying, managing director of the French firm in China.

Editor: Emmi Laine