Sogefi, the automotive components company of the CIR Group, has announced a project to start coil spring production for passenger cars in China at the end of 2018.

"The purpose of the initiative is to meet the increasing demand for coil springs in China, in view of the growth forecasts for the local car market, the gradual replacement of leaf springs and the higher technical standards required by local manufacturers," the supplier said in a statement.

CEO Laurent Hebenstreit said: "This new investment allows us to complete our offer of suspension components in China. This will create new opportunities for development and profitable growth in the world's largest car market."

An 8,000 square metre plant will be built in Wujiang, in the Shanghai area, on the existing industrial site that currently hosts a 15,000 square metre stabiliser bar factory which started operating in 2014.

The new production is expectd to contribute additional annual sales of EUR20m (US$22.2m) for the company from 2023. The spend on the new plant will be EUR8m.

When the coil spring plant is fully operational, the Wujiang suspension site will generate EUR70m in annual sales and employ about 300 people.