Trelleborg Automotive plans to open a research center in Shanghai to develop noise- and vibration-damping products for the auto industry.
"China is one of our most important single geographical markets and we are continuing to strengthen our manufacturing and development," said Roger Johansson, Trelleborg Automotive's business area manager, in a statement.
The facility is scheduled to open at the end of the year.
Trelleborg says its test chambers will allow engineers to simulate brake noise experienced in driving conditions anywhere in the world at temperatures ranging from -30 degrees to +45 degrees Celsius.
The company's Chinese operation operates five wholly owned factories and employs 1,100 workers.
Based in Sweden, Trelleborg Automotive produces anti-vibration materials, insulation and engine cooling systems. In the first three months of 2010, Trelleborg Automotive reported global net sales of 2.5 billion kronor (about $323 million) up 37 percent from the year-ago period.