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DUBAI - Lianhe Sowell International Group Ltd. (NASDAQ:LHSW) announced Tuesday it has signed a $105 million non-binding financing agreement with European infrastructure investment fund Excellent Capital Investments (ECI) to establish an AI-powered robot manufacturing and R&D base in the United Arab Emirates.
The total investment for the project is estimated at $132.5 million, with Lianhe Sowell contributing 20% as cornerstone investment and ECI providing the remaining 80% through structured senior secured credit support, according to a company press release.
The manufacturing facility, which has an estimated construction period of 18 months, is expected to produce several thousand AI robots annually upon completion and create more than 2,000 local jobs. The company also plans to establish a robotics technology training center in the region.
Lianhe Sowell indicated the AI painting robots will be deployed across various sectors including automotive, construction, aviation, rail transportation, marine, and new energy industries.
The agreement remains subject to due diligence, documentation, and final approval. The UAE was selected for its strategic location at the crossroads of Asia, Europe, and Africa, as well as its business-friendly environment, the company stated.
Lianhe Sowell provides industrial vision and robotics solutions specializing in smart transportation, industrial automation, artificial intelligence, and machine vision. While the company remains profitable with a gross margin of 26.2%, InvestingPro analysis suggests the stock is currently overvalued, with 8 additional key insights available to subscribers.
In other recent news, Lianhe Sowell International Group Ltd. announced a significant $105 million financing agreement with Excellent Capital Investments to establish an artificial intelligence-powered robot manufacturing and research facility in the United Arab Emirates. The total investment for this project is estimated at $132.5 million, with Lianhe Sowell contributing 20% as a cornerstone investment. Additionally, the company has secured equipment supply agreements worth approximately $4.3 million with Midea Group, facilitated by Shenzhen Hechuan Intelligent Electronics Co., Ltd. as their agent. This agreement involves providing AI-driven 3D automatic optical inspection solutions, with $970,000 worth of equipment already delivered.
In another development, Lianhe Sowell completed the export and commissioning of 10 sets of their new generation automated precision vision spray painting robots to South Korean client MM Motors Co., Ltd. These robots are now fully operational at a Mercedes-Benz 4S service center in South Korea. This follows a previous delivery to Mercedes-Benz Asia’s Body & Paint Center in Beijing. These recent developments highlight Lianhe Sowell’s ongoing expansion and technological advancements in the robotics sector.
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