The plant will be located in the city of Hefei, Anhui Province, and will require an investment of EUR150m. Construction is due to start in the middle of 2008.
In a statement, Continental said that required permits still need to be granted by the central government in Beijing.
Continental considered more than 20 possible locations over a period of two years before deciding on Hefei. The site is about 450km west of Shanghai and located between Beijing and southern China.
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