CHANGZHOU, Jiangsu – Germany-based ThyssenKrupp singed on February 23 a binding agreement to invest an additional $35 million in its second facility in Changzhou.
With a registered capital of €25 million in the first phase, this additional funding will be used to bring in the cold forging process needed to produce parts used in steering systems.
This new facility was put into production in January of this year and is mainly dedicated to produce electronic power steering (EPS) systems for passenger vehicles. Compared with traditional mechanical and hydraulic steering systems, the new system can significantly reduce fuel consumption and is expected to become a core component of unmanned vehicles in the future.
In 2012, ThyssenKrupp Engine System (Changzhou) Co., Ltd. was established by ThyssenKrupp in Luoxi Town of Changzhou National Hi-Tech District in Jiangsu Province, as an entity to produce assembled camshafts for vehicles. With a total investment of €71 million, this engine production facility generated sales of ¥280 million ($43.08 million) in 2015.
The Sino-German Innovation Park built by the two parties has been listed as a key project in the China-EU Cooperation on Urbanization and has received a great deal of attention and support from both the Chinese and German governments.