CHONGQING -- Continental AG began construction of a factory last week in Chongqing in southwest China to supply brakes to automakers operating in the area.
The plant, run by a partnership between Continental and Chinese parts supplier Huayu Automotive Systems Co., will start production in the fall of 2016.
The factory will mainly produce brake calipers, vacuum boosters and electric parking brakes. Initial investment will exceed 600 million yuan ($97 million), according to Continental.
Continental operates 25 plants in China that produce tires, chassis components, safety equipment, powertrain parts and electronics. The German supplier also maintains 15 r&d centers in the country.
Huayue, listed on the Shanghai stock exchange, is a subsidiary of SAIC Motor Corp.