Echelon Corp has signed an agreement to form a new joint venture firm, Zhejiang Echelon-Holley Technology, in China, to focus on the development and sales of advanced smart metering products for the country.

The new joint venture company will develop advanced smart metering and related solutions that deliver performance, reliability and expanded functionality to China’s developing smart grid.

It combines Echelon’s Silicon Valley energy control networking innovation center, and Holley Metering’s breadth of metering solutions, low cost manufacturing competencies and extensive customer relationships.

Echelon, which owns majority stake in the new company, and Holley Metering will both contribute cash and resources into the new company.

The Echelon-Holley joint venture is expected to be operational in the third quarter of this year.

Echelon is engaged in energy control networking for the smart grid, smart city and smart building applications.