HONG KONG — Geely Automobile Holdings Ltd. said it is investing $326 million in a new satellite manufacturing plant in China in efforts to provide more accurate data for autonomous vehicles.
The Hong Kong-based car manufacture intends to construct low-orbit satellites in Taizhou, according to a statement. The low-orbit satellites can offer high-speed internet connectivity, highly precise navigation and cloud computing capabilities. The new facility will include a modular satellite manufacturing center, satellite testing center, satellite research and development center and cloud computing center.
Geely aims to produce 500 satellites each year by around 2025, with around 300 highly-skilled staff.
“Today, the automotive industry faces huge challenges and equally huge opportunities. Geely must take the initiative to embrace change, develop through innovation, find new synergies online and offline, and cooperate with global partners to become a global technology leader, drive change in mobility, and create new value for users,” says Li Shufu, the chairman of Geely.
The facility, which will be launched under the company's subsidiary Geely Technology Group, marks the first time a private enterprise has begun to produce satellites in China, Geely said. In the stock market, Geely hasn't seen much movement after opening the year trading at $1.97 per share. Since then, it has traded in between $1.58 per share and $2.11 per share.
In business for more than 30 years, Geely has manufacturing plants in Luqiao, Linhai, Ningbo/Cixi, Chunxiao, Baoji, Jinzhong, Xiangtan, Jinan, and Chengdu. It also exports its products to the Middle East, Europe, and Africa.
Earlier this month, Geely said it was potentially collaborating with AB Volvo to construct a strong global group.
Geely said that its operating company, Geespace, will begin the launch of its commercial low-orbit satellite network by the end of 2020.