Chietom (智同科技), a startup specializing in precision transmission gear, today announced an equity funding round worth tens of millions of yuan.
The round was backed solely by Hebei Robot Industry Fund, a government-backed fund dedicated to investment into the robotic sector.
Proceeds from the round will be used to support the drive of Chietom’s subsidiary in northern China’s Hebei, which borders Beijing, to produce 1 million high-precision reducers meant for robots.
According to media reports, part of the funds will go to construction of a production facility and engineering test center for Chietom.
Chietom set up shop in September 2015 as a specialist in precision transmission components. These parts are essential to motion control and transmission of industrial equipment and robotics.
The website of Chietom says that the firm’s products are applied in every field related to precision transmission and motion control, spanning industrial robotics, high-precision machine tool, wind power, AGV, shipbuilding, construction machinery and high-speed railway.
cnrobopedia reported in March last year that the firm bagged hundreds of millions of yuan in a raise and another hundreds of millions of yuan during an earlier investment in 2022.
Image credit: Unsplash
Its subsidiary, also called Chietom and awash in cash, is headquartered in the high-tech development zone of Shijiazhuang, the provincial capital of Hebei, with a registered capital of 500 million yuan (US$69.70 million).
The company is tasked with translating the technological innovations of its Beijing-based parent into tangible products for commercialization in Hebei.
By investing into Chietom, the Hebei state-run fund banks on its role as an industrial leader to spur the growth of the overall robotic sector in the province.
Hebei has a solid foothold in industries ranging from steelmaking to pharmaceuticals, and from IT to new energy vehicle, amounting to over 1 trillion yuan in output.
Robotic components producers like Chietom, despite their relatively smaller size, are deemed important in the province’s endeavor to pivot to automation and digitalization.
It is common for Chinese industrial funds, often comprising local governments as limited partners, to support companies they consider are of strategic importance.
The Hebei Robot Industry Fund was up and running in 2023 and has 2 billion yuan of assets under management. Its primary focus of investment is on robotics, intelligent manufacturing and AI.