Hikvision recently announced a US$1.5 billion investment plan to construct four new R&D centers and two new industrial bases to expand surveillance equipment manufacturing and general R&D in various Chinese cities.
As security concerns and cybersecurity risks increase worldwide, Hikvision anticipates demand for its conventional security business will continue to grow steadily.
“These new China-based facilities show Hikvision’s commitment to R&D in the traditional surveillance industry, while expanding our technology innovations in IoT, smart home, industrial automation, automotive electronics, smart cities and more,” said Jeffrey He, president of Hikvision USA and Hikvision Canada.
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 Centers 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.