New Hope Data Technology, a Shanghai-based company focused on data acquisition, monitoring, analytics, knowledge transfer through the implementation of IoT technologies, has entered into a joint venture agreement with Internet of Things (ITT), a Canadian IoT software and solutions provider. The joint venture (JV) will be focused on bringing global industrial IoT solutions to New Hope owned factories, as well as other manufacturing facilities across China and will be called New Hope IoT Intl. Inc.
With more than 600 subsidiaries and nearly 70,000 employees, New Hope is involved in a wide range of sectors, from agriculture and real estate to infrastructure, chemical engineering, finance and insurance. Under the terms of the JV, ITT will hold a 51% interest and will be responsible for providing global industrial IoT technologies such as sensors, predictive analytics and secured wireless, among other technologies to New Hope’s network.
On the other hand, New Hope will hold a 49% interest in the JV and its sales and marketing team, big data platform and IT consultants will be responsible for the JV day-to-day operations. It will also invest initially $2 Million as an operating and working capital loan into the JV.
“New Hope Data has already built out a robust data analytics platform and a professional services team, that currently is working with factories in China to monitor and analyze industrial processes and inputs, converting them into actionable insights and knowledge. This helps the factories’ management teams improve operational stability, product quality, profitability and reduce downtime,” said Zhao Gang, Chairman, New Hope Data Technology.
Gang further noted that there exists a significant market gap that can be filled with the products and services that the JV will be providing for their internal network of factories and external customers across China.
In addition to the JV securing strategic distribution partnerships with various leading IoT technology companies around the world, New Hope also plans to negotiate options to purchase equity in software and solution providers from which it secures distribution rights.
“We are very excited to be launching in China with such a strong joint venture partner in New Hope, who shares our vision and drive in building out the leading Chinese industrial IoT platform. This recurring annual revenue model in partnership with New Hope’s network of factories and businesses is expected to provide ITT Inc. with ongoing revenue and a profitable income stream,” said Michael Frank, CEO, ITT Inc.