Bosch is planning to construction of a plant in Chengdu, Sichuan province, for the company's Chassis Systems Control Division.

The project is expected to cost US$137m and will result in the formation of Bosch Automotive Products (Chengdu) Co Ltd.

Its first phase is to be finished by the beginning of 2013 and will give the company the ability to produce 1.4 million antilock-braking and ESP systems a year. It will also be able to produce 19 million wheel-speed sensors annually.

Ferdinando Sorrentino, regional president of Bosch Chassis Systems Control Division China, said only 15 percent of the vehicles produced in China last year were equipped with the ESP system. Globally, the figure is about 44 percent. "The acceptance and demand are increasing," he said.

This project will result in the second production site that Bosch Chassis Systems Control has in China and is in line with Bosch's plans to invest more in the country's western and central regions.