Chassix, which supplies cast and machined components to the auto industry, plans to establish a greenfield plant in Ostrava, Czech Republic.
The factory will cast aluminium chassis and powertrain components for passenger cars, will be operational in early 2018 and will cost about US$50m.
The new factory will cover 140,000 square feet and will be the company's first casting foundry and third plant in Europe. The supplier said it would "further vertically integrate" its manufacturing footprint in each of the key automotive regions.
Though it will start with alloy castings, the plant has been designed for future growth in auto lightweighting and many international OEMs are located close by.
"Ostrava is aligned with [our] global strategy of partnering with our customers to provide tailor-made engineering and manufacturing solutions for safety-critical chassis and powertrain components where our customers need us most," said Doug DelGrosso, Chassix chief executive officer.
The new factory initially will focus on aluminium casting, machining and assembly operations. It is expected to create 350 skilled jobs.
Chassix booked 2016 sales of $1.2bn. It operates 24 factories in seven countries and employs 4,500 workers.