(Yicai) Oct. 21 -- Shares in Shanghai Electric Group surged by the exchange-imposed limit today after the Chinese state-owned electrical equipment giant said it intends to pay CNY3.08 billion (USD433 million) for a 50 percent stake in Shanghai Fanuc, a joint venture between Shanghai Electric’s parent firm and Japanese robotics firm Fanuc, to branch into automated production.

Shanghai Electric’s share price [SHA:601727] closed up 10 percent at CNY4.97 (USD0.70).

Shanghai Fanuc, which is an equal joint venture set up in 1997 by Shanghai Electric Group ‘s parent Shanghai Electric Group Corporation and Oshino-based Fanuc, will become a subsidiary of Shanghai Electric after the transaction, Shanghai Electric said on Oct. 18.

The firm’s Shanghai factory makes industrial robots, intelligent machinery and automated production systems for customers in the manufacturing sector. Fanuc, together with ABB, Kuka and Yaskawa, are known as the “four giants of industrial robots” in the world.

The tie-up will introduce Shanghai Electric's customers in emerging industries including lithium batteries, solar cells and aviation who are looking for automation assembly services to Shanghai Fanuc, it said. In this way it will improve the overall capacity and core competitiveness of the automated production of Shanghai Electric’s clients.

Shanghai Fanuc can also bring new customers in consumer electronics and 3C to Shanghai Electric, it added.

Shanghai Electric will branch into the development of special robots and intelligent robot products after the transaction, it said. The company will also work with Shanghai Fanuc to produce a new generation of intelligent robots and promote these products in a wider range of fields.

Editor: Kim Taylor