(Yicai Global) June 12 -- China's Aoxing Group Corp. and Russian industrial holding company NPP Itelma recently signed an agreement to set up a joint venture to build a research and development engine control unit and production center with total investment of around USD87 million (CNY600 million), China National Radio reported online (Cnr.cn) last Friday.

The pair entered into a cooperative agreement to launch a joint venture in the high-tech park in Chengdu, capital of southwest China's Sichuan province, at the Hannover Messe industrial trade fair, the report said.

The new company will specialize in driving assistance system development and production, joining the two companies in in-depth engine control unit (ECU) research and development.

They will also jointly build a CNY600 million 3.33-hectare ECU research and development and manufacturing center with an annual production value projected at CNY4 billion, per the agreement.

Leveraging Itelma's advanced military aerospace technology, the joint venture will ultimately enter the Chinese civil aviation market after a transition from core technology importation and collaborative product development toward independent innovation and civilian-military integration.

As a core component of car engines, an engine control unit, commonly called an engine control module, controls a series of actuators and serves as the brain of ae car when it is running.