(Yicai Global) Oct. 8 -- Tongda Power Technology, which usually makes motors and generators, plans to join the rapidly expanding wearable tech sector by setting up a joint venture with Guangdong Wearable Digital Technology.
The pair will invest CNY100 million (USD14.6 million) in the new firm, which will be based in Tongda's home province Jiangsu, the motor maker said in a statement today. Tongda will take a 51 percent stake in the venture but did not furnish a specific description of what exactly the new company will do, aside from exploring and conducting business in the smart wearables sector.
Smart wearables, which include items such as internet-connected wristwatches and fitness trackers, have become increasingly popular in recent years. Apple and FitBit rank among some of the more popular product makers, while Google's connected eyewear, Google Glass, was not so successful. Data provider CCS Insight believes the sector will be worth USD29 billion by 2022, according to a February report.
Setting up the company will allow Tongda to quickly gain access to the market by leveraging Wearable Digital Technology's technology, personnel, marketing channels and client resources, the statement added.
Editor: James Boynton