On Tuesday, a newly formed high-tech company sprang forth in Shanghai from a partnership between corporate giant DaimlerChrysler AG and the Shanghai Institute of Metallurgy (SIM).

With an investment of 920,000 euro (US$944,000), the company will focus on research and development of vehicle technology such as automotive electronics, electronic packaging and railway technologies, said an SIM spokesperson. "China may expect to have a share of the world's advanced automotive technology through this newly created high tech firm."

It will enable China to produce its own complicated automotive electronics and provide substitutes for some imported components, according to some experts.

DaimlerChrysler AG, a merger between Daimler-Benz and Chrysler Corp last year, is a globally recognized manufacturer of automobiles, trucks, transportation facilities and equipment.

Daimler-Benz, before the merger, has set up with SIM a lab specialized in research and development on packaging technology of electronic devices.

The past five years have witnessed great accomplishments at the lab, the spokesman said.

"The fruitful work of the lab paved the way for DaimlerChrysler SIM Technology Co Ltd.," he said.

DaimlerChrysler SIM will also provide such business services as product testing, quality control and technological consulting, the spokesperson said.