
By Gabby Chen
(JW Insights) Mar 16 -- Huazhong Numerical Control (华中数控), a leading Chinese maker of computer numerical controls (CNC), plans to boost its research and design of CNC systems by raising RMB1 billion ($150 million) through a private placement of shares, reported Yicai Global on March 15.
A high-end CNC system is the most crucial component of high-performance machine tools, it has high technical barriers and strong user engagement, according to a research report by Kaiyuan Securities. Based in Wuhan of central Chinese Hubei Province, Huazhong Numerical will likely take a larger share of the high-end CNC system market after the latest investment.
It will use RMB510 million ($74 million) of the sale proceeds for key technology research and industrialization projects of a five-axis CNC system and a servo motor. Huazhong Numerical's controlling shareholder and other sources will provide the necessary funds, the company said on March 13.
Huazhong Numerical was founded in 1994 and went public on the Shenzhen Stock Exchange in 2011. Its primary business covers CNC system support, industrial robots and intelligent manufacturing.
Five-axis CNC machines process complex surfaces and are the only tool capable of processing marine propellers and large diesel engine crankshafts.
A survey commissioned by the Ministry of Industry and Information Technology (MIIT) in 2020 showed that Chinese brands had about a 50 percent share of the domestic high-end CNC system market, with Huazhong Numerical having around 20 percent, according to the Yicai Global report.
RELATED
-
Counterpoint: Huawei's mobile operating system Harmony OS takes up a 2% global market share in Q4 2022
03-31 18:04 -
Bloomberg: Tesla plans to teams up with Chinese battery giant CATL to build a battery plant in US
03-31 18:03 -
Chinese government's IC Fund adjusts its portfolio and moves on to support more equipment and materials makers
03-31 16:27
READ MOST
-
ijiweiTalk Ep 244: China Cracked Quantum Encryption? END GAME of password!
1.4w03-14 13:56 -
Bosch receives construction permit for its $1 billion EV parts plant in eastern China's Suzhou
1.1w03-24 17:04 -
Twenty+ renowned industry experts confirm to attend and address 2023 Global Semiconductor Industry Strategy Summit from April 7th to 8th in Macau
1.1w03-23 18:09 -
Reuters: Nvidia modifies its flagship chip to circumvent US chip ban and export it to China
1w03-23 18:09 -
China’s national semiconductor Big Fund injects $1.87 billion into the country’s top memory chipmaker YMTC with a stake in it
966503-02 21:33