German supplier Thyssenkrupp will build a factory in the east China city of Pinghu to produce springs and stabilizers for a variety of automaking customers.
The 30-million-euro (220 million yuan) plant will open next year. The factory will employ 200 workers, and it will deliver products to European, American, Japanese and Chinese carmakers.
The plant will be Thyssenkrupp's third Chinese factory to produce springs and stabilizers in China. Over the last three years, the company has spent 300 million euros to expand production in the market.
In addition to the Pinghu factory, the company is building a steering systems plant in Changzhou, Jiangsu province.
Last year, Thyssenkrupp generated sales of three billion euros in China.