CHANGZHOU, China, March 2, 2016 /PRNewswire/ -- On February 23, Germany-based ThyssenKrupp signed a binding agreement to increase the investment in its second facility in Changzhou, China by US$35 million. The additional funding will be used to bring in the cold forging process needed to produce parts used in steering systems.
In 2012, ThyssenKrupp established ThyssenKrupp Engine System (Changzhou) Co., Ltd. in Luoxi Town, Changzhou National Hi-Tech District, Jiangsu Province as an entity to produce assembled camshafts for vehicles. The engine production facility, with a total investment of 71 million euros, generated sales of 280 million yuan in 2015.
The new facility will mainly serve 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. The first phase of the facility has a registered capital of 25 million euros and was put into production in January of this year. The additional investment of US$35 million will be used to bring in the cold forging process.
The Sino-German Innovation Park jointly 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 the Chinese and German governments.
SOURCE Changzhou National Hi-Tech District