Hikvision Corporation has confirmed a €1.28 billion investment plan to construct four new R&D centres and two new industrial bases to expand surveillance equipment manufacturing and general R&D in various Chinese cities. As security concerns and cyber security risks increase worldwide, Hikvision anticipates demand for its conventional security business will continue to grow steadily. “While we stay committed to R&D in the traditional surveillance industry with video technology as our core business, the planned facilities will promote Hikvision’s technology innovations on the development of artificial intelligence applications, the Internet of Things, smart cities and more,” says Derek Yang, General Manager of Hikvision Europe.
Hikvision will use accumulated profits to fund the project and may seek additional financing methods from traditional sources such as loans. Hikvision’s fixed asset ratios will remain low and operational cash flow will continue to be robust. Hikvision’s new R&D Centres will be constructed in the Chinese cities of Xi’an, Wuhan, Chengdu and Hangzhou. Industrial bases planned for the Chinese cities of Chongqing and Wuhan will improve Hikvision’s manufacturing capacity and production scale for security and innovative new technologies.
Hikvision’s planned investment project is expected to be completed by the end of 2021.