(Yicai) March 13 -- Zhongding Sealing, a Chinese maker of auto parts, intends to invest CNY1 billion (USD138.2 million) to build a new research and development and production base to expand its robot parts manufacturing business.

Zhongding plans to sign an investment agreement with a district in Anhui province's Hefei to rent a local building and build the company's robot business headquarters, as well as a research and development and manufacturing hub for core parts in stages, the Anhui-based firm announced yesterday.

In the first phase, Zhongding will establish a production line for harmonic reducers and joint assemblies with an annual production capacity of no less than 150,000 units. Eventually, it will add products such as torque sensors and rotary actuators.

Harmonic reducers are precision gear mechanisms used to reduce speed and increase torque, and are applied to the joints of industrial robots. Torque sensors measure the rotational force applied to a rotating system. Rotary actuators convert energy into rotational motion.

Zhongding is increasing its output of robot parts after gaining new orders. Last month, the firm said that it would become the preferred supplier of robot joint components for EngineAI Robotics Technology, a humanoid robot startup. Earlier this month, it announced a contract with industrial robot giant Efort Intelligent Equipment to jointly develop components and assemblies for industrial and humanoid robots. Last month, Zhongding also teamed up with Wuzhou Xinchun Group, another maker of auto parts, to develop components for humanoid robots and finished products.

Zhongding [SHE: 000887] closed 2.7 percent higher at CNY21.85 (USD3) in Shenzhen today despite a decline in the SZSE Component Index, which dropped by 1 percent. Since the beginning of this year, Zhongding has soared by over 70 percent due to the new business direction, hitting a three-year high in late February.

Editor: Emmi Laine