According to the announcement, this investment is an important measure for Reneng Technology to accelerate the development of the company’s industrial automation business, which is conducive to expanding the scale of industrial automation business and is an investment to continue to strengthen the company’s established development direction.

Industrial automation business is one of the company’s strategic businesses. In recent years, the company focuses on the development of industrial automation control products business, the product line has covered the industrial automation control system “control layer, drive layer and execution layer”, mainly including servo system, frequency converter, programmable logic controller, man-machine interface, etc. This time, the construction of industrial automation production base in Jiaxing Nanhu Industrial Park. It is considered that the leading industry of the industrial park is compatible with the existing industrial automation business of the company, which is in line with the relevant policies of the national and local governments and the strategic development plan of the company, and has positive strategic significance for the company; Jiaxing is located in the hinterland of the Yangtze River Delta, with intensive scientific and technological innovation resources and developed and convenient transportation network, which is conducive to allocating and integrating the resources of the company’s existing subsidiaries in Shanghai, Jiangsu and Zhejiang, improving the company’s response speed, enhancing customer stickiness, effectively reducing product production and transportation costs, and providing customers with better services. At the same time, it can also provide a strong guarantee for the company’s future sustainable and rapid development.

In addition, the construction of a new industrial automation production base is conducive to gradually expanding and upgrading production capacity, enriching product structure, and enhancing the status of the industry. Inverter and servo motor and other industrial automation control products are important equipment to promote the transformation of manufacturing industry and realize intelligent manufacturing, is the core component of industrial automation, the future will continue to benefit from the transformation and upgrading of manufacturing industry, brought about by the gradual growth of demand. At the same time, under the background of industrial autonomy, safety and control, domestic substitution has shaped the long-term development prospects of the industry and also brought long-term demand growth. The company will rely on better market demand and opportunities, in-depth development of the market, through the deep cultivation in different downstream application fields, continue to improve product performance, accumulate different application scenarios of the industry process, to create overall industry solutions, to carry out complete marketing, to promote the company’s industrial automation business scale continued expansion.

More importantly, this investment is the company to comply with the development trend of industrial enterprises intelligent manufacturing, fully integrate resources, continue to strengthen the company’s established development direction of investment. In the long run, this investment is conducive to the company’s sustainable operation and development, enhance the company’s core competitiveness and comprehensive strength, in line with the company’s development strategy.