Nasdaq-listed Chinese industrial automation provider, Lianhe Sowell International Group, has announced a significant move into the Middle East, signing a non-binding term sheet for a $105 million financing deal with European infrastructure fund Excellent Capital Investments. The agreement paves the way for the establishment of the company’s first AI-powered robot manufacturing and R&D base in the United Arab Emirates.
The $132.5 Million Venture
The total investment for the ambitious project is estimated at $132.5 million. Under the terms of the agreement, Lianhe Sowell (NASDAQ: LHSW) will contribute a 20% cornerstone investment, while Excellent Capital Investments will provide the remaining 80%, or $105 million, through a structured senior secured credit support arrangement. As the term sheet is non-binding, the project remains subject to due diligence and final approvals before financing is activated and construction begins.
A Hub For Advanced Robotics
The proposed UAE base is set to be a comprehensive facility integrating R&D, production, sales, and export operations. The factory is expected to produce several thousand AI painting robots annually, catering to a wide range of sectors including automotive manufacturing, construction, aviation, rail transportation, marine industries, and new energy applications. Following an estimated 18-month construction period, the new facility could create over 2,000 high-skill jobs for the local economy. In addition to manufacturing, Lianhe Sowell plans to establish a robotics technology training and certification centre to cultivate local talent and drive the adoption of industrial automation across the region.
Strategic Push Into MENA
Lianhe Sowell’s decision to establish a production base in the UAE, rather than serving the region through exports, signals a strong commitment to the Middle East. The move is strategically timed to capitalize on the region’s rapid digital transformation in manufacturing and its robust appetite for luxury vehicles, a key market for automated painting solutions. The Gulf’s industrial sector is increasingly prioritizing AI and robotics to enhance efficiency and global competitiveness. By positioning its hub in the UAE, Lianhe Sowell aims to leverage the nation’s strategic location at the crossroads of Asia, Europe, and Africa to expand its presence across MENA and global markets.
About Lianhe Sowell International Group
Lianhe Sowell International Group is an industrial automation provider specializing in the research, development, and manufacturing of industrial vision and robotics solutions. The company has expertise in smart transportation, industrial automation, AI, and machine vision, with a focus on developing intelligent equipment for various high-end manufacturing sectors.
Source: Middle East AI News
