Robert Bosch GmbH broke ground last week on its second diesel fuel injector plant in China.
The 1.6 billion yuan ($257 million) facility in Qingdao in east China's Shandong province will start production in 2018.
It will mainly make diesel fuel injectors for light- and heavy-duty trucks as well as cars, the German supplier said in a statement.
Bosch's first common-rail injector plant is in Wuxi in east China's Jiangsu province.
Like the first plant, the Qingdao plant will be jointly owned by Bosch and Wuxi Weifu, a Chinese diesel injector manufacturer.
In July, China will adopt the National 4 emission standards, which are similar to the Euro 4 emission standards. Bosch expects tougher emission controls to boost market demand in China for its diesel technology.