BERLIN -- Schaeffler will spend 180 million euros ($209 million) to build a assembly and packaging center near Leipzig, Germany, to supply auto spare parts and tools to warehouses across Europe. The facility will begin operations in 2019 and is expected to create about 900 jobs.
The supplier said in a statement that the new site in Halle, about 33 kms (21 miles) west of Leipzig, will help improve distribution quality.
CEO Klaus Rosenfeld said the investment underlines the strategic relevance of automotive aftermarket operations as well as Schaeffler's commitment to Germany.
Separately, the company confirmed its 2017 profit and sales guidance after reporting flat operating profit of 416 million euros in the third quarter and a 7.4 percent gain in sales.
Schaeffler makes ball bearings for products ranging from tools to aircraft. Its spare parts business includes clutch and release systems, engine and transmission applications and chassis applications.