The agreement will be conducted through Advanced Automation Group (AAG), a US subsidiary formed recently by Harbin. AAG will develop, design, and manufacture controllers for applications such as automated conveyor systems and postal sorting systems, as well as producing precision servo motor controllers for linear, rotary and permanent magnet motors.

As a part of the agreement, Harbin will invest up to $3m in AAG. In return, Shelton Technology has granted AAG an exclusive worldwide license for its technology and intellectual property related to precision servo motor controllers for industrial automation.

Harbin Electric, a US-based company, employs 270 people in China who manufacture linear and special electric motors. Shelton Technology, based in Michigan, offers engineering services, prototyping and production of electronic assemblies through Chinese-based contract manufacturing operations.

"We are pleased to partner with Shelton Technology to expand our capability into automation controllers," says Harbin’s CEO, Tianfu Yang. He adds that the relationship "will allow Harbin to develop and manufacture custom servo motor drive systems including motors and controllers for industrial automation OEMs."