Primech AI Plans Production of 300 HYTRON Robots through its China Manufacturing Expansion
Rhea-AI Summary
Primech AI (Nasdaq: PMEC) has announced a strategic manufacturing partnership in Guangdong Province, China, to expand production of its HYTRON bathroom cleaning robots. The company plans to manufacture 300 robots in the initial production phase through a partnership with an electronics manufacturer in Huizhou City.
The two-year agreement includes full production cycle management, from manufacturing and assembly to quality assurance and certification. The strategic location provides Primech AI with access to sophisticated electronics supply chains, technical expertise, and efficient logistics for Asian markets. The partnership aims to scale production while maintaining quality standards for meeting growing global demand.
Positive
- Strategic manufacturing partnership established in China's electronics manufacturing hub
- Initial production target of 300 HYTRON robots shows clear scaling plans
- Access to sophisticated electronics supply chain and technical expertise
- Reduced procurement lead times and transportation costs for Asian markets
Negative
- Dependency on single manufacturing partner in China for production
- Potential supply chain and geopolitical risks associated with China-based manufacturing
News Market Reaction
On the day this news was published, PMEC gained 1.60%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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SINGAPORE, May 08, 2025 (GLOBE NEWSWIRE) -- Primech AI Pte. Ltd. ("Primech AI" or the “Company”), a subsidiary of Primech Holdings Limited (Nasdaq: PMEC), today announced a significant expansion of its manufacturing capabilities through a strategic manufacturing partnership in Guangdong Province, China. The partnership will support the growing global demand for Primech AI's innovative HYTRON bathroom cleaning robots, with plans to roll out 300 robots in the initial production phase.
The partnership establishes a comprehensive manufacturing framework with a well-established electronics manufacturer in Huizhou City of Guangdong Province, creating a robust production base to serve markets across Asia and beyond. This strategic location in China's manufacturing heartland provides Primech AI access to a sophisticated electronics supply chain and specialized technical expertise.
"This manufacturing partnership in China represents a significant advancement in our production strategy," said Charles Ng, Co-Founder and Chief Operating Officer of Primech AI. "The Guangdong region offers unparalleled advantages in electronics manufacturing infrastructure, component sourcing, and technical knowledge, enabling us to scale production efficiently while maintaining the highest quality standards for our HYTRON robots. Our ambitious target of rolling out 300 robots demonstrates our commitment to meeting market demand and accelerating our growth trajectory."
Under the terms of the agreement, the manufacturing partner will manage the full production cycle for Primech AI's HYTRON bathroom cleaning robots, including manufacturing and assembly based on Primech AI's detailed specifications, implementation of comprehensive quality assurance protocols, performance of rigorous functionality and safety testing, securing necessary certifications to meet international regulatory requirements, and production scheduling and delivery timeline management. The manufacturing agreement covers an initial two-year period and includes provisions for regular quality monitoring, performance reporting, and collaborative development to ensure continuous improvement of manufacturing processes.
"Quality and reliability are foundational to our HYTRON technology, and our manufacturing partner in China brings extensive experience producing sophisticated electronic and robotic systems," added Ng. "This collaboration allows us to leverage specialized manufacturing expertise while ensuring our exacting standards are maintained throughout the production process."
The strategic location in China provides Primech AI with several key advantages. Access to a mature electronics manufacturing ecosystem enables efficient production scaling and quality control. The proximity to specialized component suppliers streamlines the supply chain and reduces procurement lead times. The facility offers scalable production capacity to meet the growing global demand for HYTRON robots, starting with the 300-unit initial target. Finally, the location provides efficient logistics for serving Asian markets, reducing shipping times and transportation costs.
This expansion of manufacturing capabilities in China complements Primech AI's recent product innovations and market expansion initiatives, reinforcing the Company's commitment to meeting growing global demand for its autonomous cleaning solutions.
About Primech AI
Primech AI is a leading robotics company dedicated to pushing the boundaries of innovation in technology. With a team of passionate individuals and a commitment to collaboration, Primech AI is poised to revolutionize the robotics industry with groundbreaking solutions that make a meaningful impact on society. For more information, visit www.primech.ai.
About Primech Holdings Limited
Headquartered in Singapore, Primech Holdings Limited is a leading provider of comprehensive technology-driven facilities services, predominantly serving both public and private sectors throughout Singapore. Primech Holdings offers an extensive range of services tailored to meet the complex demands of its diverse clientele. Services include advanced general facility maintenance services, specialized cleaning solutions such as marble polishing and facade cleaning, meticulous stewarding services, and targeted cleaning services for offices and homes. Known for its commitment to sustainability and cutting-edge technology, Primech Holdings integrates eco-friendly practices and smart technology solutions to enhance operational efficiency and client satisfaction. This strategic approach positions Primech Holdings as a leader in the industry and a proactive contributor to advancing industry standards and practices in Singapore and beyond. For more information, visit www.primechholdings.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, for example, statements about completing the acquisition, anticipated revenues, growth, and expansion. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements are also based on assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Company Contact:
Email: ir@primech.com.sg
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
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