SAF-Holland, a global manufacturer of heavy duty commercial vehicle components, plans to spend around US$100m on a new manufacturing facility in Yangzhou city in China's eastern Jiangsu province, according to local reports citing city government officials.

The present company, SAF-Holland, headquartered in Luxembourg, is the result of the merger of Europe's SAF and Holland of the US back in 2006.

The group, which controls the SAF, Holland and Neway brands, generated a turnover of over EUR1bn in 2016 with 3,400 employees across 28 locations worldwide.

The new Yangzhou plant, comprising a 46,000 sq m workshop a 20,000 sq m warehouse, will produce axles, suspension systems and chassis parts for trucks and trailers. 

It will be SAF-Holland's largest manufacturing facility worldwide and is projected to generate annual revenues of CNY600m (US$95m) from domestic and overseas customers, according to the business plan.

Construction of the plant is scheduled to be completed by the end of 2018, with operations starting in 2019.