(Yicai Global) Nov. 19 -- Japanese automation firm Fanuc has teamed up with Shanghai Electric Group to establish the former's new South China headquarters in Guangzhou to better serve car, key components, and high-end equipment manufacturers.

Fanuc Robot will integrate the business of Fanuc's existing Shenzhen and Guangzhou branches to manufacture and sell automation technologies, the chief of the 50:50 joint venture said during an interview with Chinese media.

Fanuc's move signals an increasing pull of the Chinese market. Since 2013, China has been the world's largest industrial robot market and southern China's Guangdong province is its production hub, making up one-fifth of the nation's total output.

Global bot makers, such as Germany's Kuka, Swiss-Swedish ABB, and Japan's Yaskawa Electric, are pursuing a bigger slice of the China pie but they face tough competition from local firms including Siasun Robot & Automation and Estun Automation which can often offer lowered price points. 

Oshino-headquartered Fanuc's [TYO: 6954] share price dropped by 1.3 percent to JPY20,870 (USD192) in the afternoon. 

Editor: Emmi Laine