Rayence, a Korean company, specializing in digital X-ray imaging solution, said Tuesday that it has signed an agreement with Teikon, a South American semiconductor firm, to establish a joint-stock corporation in Brazil.

Under the agreement, the two companies plan to establish RT Tecnologia Medica, a specialized producer of X-ray detectors, in the South American country. Rayence will participate in management as a major shareholder, building local production system, and entering Latin American detector market.

With the establishment of joint-stock company, Rayence plans to replace the old computed radiology equipment, which occupies most of the Brazilian X-ray system market, through local manufacturing and importing of high-priced detectors. The joint-stock company will enjoy tax breaks under the Electronic Industry Promotion Law benefitting local manufacturing enterprises.

The company also expects the network of the PARIT Group, which is the parent company of Teikon, will be helpful in the company’s expansion in South America.

“Our company is diversifying its alliance with local companies to expand its global market share,” Rayence CEO Hyun Jeong-hoon said. “The joint-stock company has resulted in the establishment of a production base in South America and a technology export.”

This year, the company plans to increase the export of its core technology for detectors by diversifying local business alliance and concentrating on the animal X-ray system industry for future businesses, he added.

PARIT Group also showed expectations for the joint-stock company.

“We are very pleased to welcome the Rayence, which has excellent technology, as a partner to work in the South American detector market,” PARIT Group CEO Ricardo Felizzola said. “The company expects that the technology transfer from Rayence will accelerate the digitization of the South American X-ray market.”