Delphi Automotive has held a groundbreaking ceremony in Yantai, Shandong Province, for a new diesel manufacturing facility.

It is spending US$100m to construct and equip the facility.

“This investment in Yantai represents Delphi’s commitment to be a strategic, market-relevant diesel fuel injection supplier in China,” said Rodney O’Neal, president and chief executive officer.

The Yantai operation will produce high-precision diesel fuel injection systems components. The new manufacturing facility, expected to start production in late 2013, will be supported by an existing Delphi operation in Suzhou that will supply engine control modules.

Delphi currently employs 2,800 people in the Yantai municipality and Fushan district and expects to hire an additional 500 employees at the new facility.