BNP paribas will invest more than $10bn in the Chinese CNC manufacturing industry, the largest of its kind in the world, as part of its plans to become a major player in the sector.
The investment is part of BNP’s $50bn takeover of the China CNC technology company, which has been beset by a series of problems including a shortage of skilled workers, according to a statement from the company on Wednesday.
The $10-billion investment will come as BNP is working to increase its CNC output by 30 per cent this year.
“China is the world’s biggest market for CNC machines and BNP will have a key role in shaping this industry’s future,” BNP chief executive Jean-Christophe Poupard said in a statement.
BNP also said that it will invest $5.5bn in a CNC engineering and design firm, which it has bought from Chinese firm Shanghai Engineering Group.
“The company is investing in a business with significant scale and is looking forward to its success in China,” BN Poupart said in the statement.
The CNC business is a key component of the world market for digital cameras, which account for about 15 per cent of global sales.
BN has been looking for ways to increase the penetration of its CEC, which can process digital photos.
Last month, BN announced a $1bn fund that would allow it to grow its CEG business in the US and other parts of the western world.
In February, BNP acquired the CNC and manufacturing company China Advanced Electronics Group (CASE), which it purchased for $3.7bn in January.
In October, BnP bought a majority stake in China Digital Corp, which produces and sells high-end optical-coating, computer-monitoring and sensor products for the automotive industry.