Japanese electric motor manufacturer Nidec Corporation last week began construction of a new manufacturing plant in China, as it looks to increase its exposure to the expanding local electric vehicle (EV) market.
The new JPY100bn (US$973m) factory is being built in the Jinpu New Area of Dalian city in Liaoning province.
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It is scheduled to start operating in 2021 with capacity for 3.6m EV drive motors a year.
The company announced last month it planned to double its investment in the plant following the global outbreak of the COVID19 coronavirus, from the JPY50bn investment initially announced in 2019.
Nidec is the leading investor at the newly-built Jinpu industrial part, which has a planned area of 28 sq km, and brings with it 34 supporting companies.
Igarashi Kazutsugu, general manager of Nidec (Dalian), said he was confident about the long term outlook for the Chinese EV market despite the current coronavirus pandemic and voiced his confidence in the local government.
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By GlobalDataDalian government officials said the city "will try its best to provide services related to the construction of the new plant, help it achieve its designated production capacity as soon as possible and set a new benchmark for China-Japan cooperation".
