Continental Automotive Systems, a division of Continental AG, will invest EUR67m in a new hydraulic brake plant in China.

The 70,000 sq. m. plant will be located in Changshu City, 100km north west of Shanghai. The site will be within the Changshu Southeast Economic Zone in Jiangsu province.

Series production of hydraulic brake products is expected to start in the second half of 2008. By 2011 around it should employ around 1,000 people.

The product range consists callipers for front and rear axles and brake boosters for OEM customers in China, Japan and Korea. The annual production capacity is aimed to reach 2 millions of brake actuation units and 4.6 millions of brake calliper by 2011.

“By 2010, we want to double our sales in Asia.” said Jay Kunkel, president of the Asia region and member of the management board at Continental Automotive Systems, as he described the company’s strategic goal in Asia.

“The new plant in Changshu, will become the key production base of our hydraulic brake products in East Asia.  As the market leader in hydraulic brake technologies, we are committed to supplying our Asian customers with the best products, the best services and with uncompromising quality.”

Continental Automotive Systems began operations in China in the mid-1990s and opened its Asia headquarters in Shanghai in January 2006.  Today it has four plants and one winter test centre in China supplying advanced electronic brake systems, hydraulic brake systems, body electronics and sensor products to the Chinese automotive market.  With the acquisition of Motorola’s automotive electronics business in 2006, Continental Automotive Systems gained additional engineering and manufacturing capabilities in China, in telematics and bluetooth communications, powertrain and chassis technologies.