NSK Ltd, the largest bearing manufacturer in Japan, is looking to expand its operations in Hangzhou due to its "sound investment climate and complete industrial infrastructure", said Yu Guoping, vice president of NSK China.
In Oct 26, the auto parts supplier will break ground on a new factory on automotive components in Xiaoshan, the most economically developed district of Hangzhou.
It is expected to be put into operation before the end of 2019.
Covering an area of 80 mu (5.33 hectares), the $100-million factory will focus on the research and development of components of new energy vehicles, automotive electronics as well as system integration.
The new production base in Xiaoshan will be the first factory that the company has opened in China since its 100th anniversary in 2016.
Talking about landing in Xiaoshan, Yu noted that the place is ideal both geographically and industrially for its new manufacturing base.
We have a lot of supporting suppliers here in aluminum casting and electronic parts. Also, the local government departments offer strong investment support and efficient services, which makes it easier for us to do business, he said.
Yu pointed out that Hangzhou boasts a pool of high-quality talents which are decisive for the development of a company.
Having entered into the Chinese market in 1992, NSK has been expanding into more and more cities in China over the past 26 years and has established a research center, 12 production bases and 18 sales outlets across the country. At present, China is the largest overseas destination for investment, production and sales.
There is an increasing demand in the Chinese market, especially with the development of advanced technologies, including new energy vehicles, robots, intelligent manufacturing, which is in line with NSK's products and technologies. "We are confident about the Chinese market and will continue to expand the scale of production", Yu said.
Over the years, Xiaoshan district has been committed to industrial upgrading and transformation. From January to the end of September, the district attracted 26 foreign-funded enterprises with a total foreign investment of $446 million.