Germany-based Erdrich Umformtechnik has expanded its operations in China with a new automotive components facility in Changzhou.
The 20,000m2 facility will produce automotive parts and components that are used in steering and suspension systems, including steering linkages and cross arms. It will use precision moulds in the stamping process.
Called Erdrich Umformtechnik Metal Forming Technology (Changzhou), the new company is expected to generate revenues of around CNY200m ($32m) in the first phase of its operations.
The German has considered various options for its manufacturing facility in China, and has evaluated development zones in several cities across the country.
The first phase of production is estimated to cost $60m, and the company has so far spent $26m on the project.
Erdrich Umformtechnik manufactures metal parts used in automobile chassis, braking and engine systems for carmakers including BMW, Benz and VW as well as first-tier suppliers.
