QINGDAO, China—Mesnac Co. has announced its plan to raise about $198.5 million through private placement for four smart manufacturing projects in Qingdao.
The most expensive project is a tire equipment manufacturing site with $74 million investment. Construction of the new site is estimated to take two years. Its annual net profit and revenue are projected to be about $10.9 million and $69.4 million, Mesnac said in a Nov. 24 news release.
The project will realize intelligent and agile manufacturing as well as mass customization for equipment, and also include a big data center for deep digging in the tire industry and value-added intelligent services.
Another project is a second phase expansion of Mesnac's industrial robot and smart logistics system site, with about $57.5 million budgeted.
The project will have the capacity of 1,065 units per year for industrial robots—including cartesian coordinate robots, palletizers and robot joints—and the capacity for 75 units of automatic storage and retrieval systems and other logistics systems.
When in operation after a two-year construction period, the expansion project is expected to bring in $11.9 million annual net profit on revenue of $117.1 million.
Mesnac projects that the world will see a $1.5 trillion industrial robot industry with more than 15 million robots by 2020 and China has been the fastest-growing market.
Mesnac also plans to invest about $38 million into smart tire factory research center that aims to provide tire makers with modularized package solutions and factory upgrade services
The fourth project is a smart tire applied technology center with $22.8 million investment planned. It will provide big data analysis services and also have the annual capacity of 120 million RFID labels, 5,500 unit TPMS and 7,000 unit of various data terminals.
The center will take three years to complete and have about $11.9 million annual net profit on $61.8 million revenue when in operation.
“The key of smart manufacturing is the in-depth integration of information technology, robots and equipment manufacturing processes,” Mesnac said in its release.