Robert Bosch GmbH, the world’s largest supplier of automotive components plans to invest $137 million (880 million yuan) to build a new 127,000 square meters plant in Chengdu, Sichuan province.
The German giant said the first phase is to be finished by the beginning of 2013 and will give the company the ability to produce 1.4 million antilock braking and ESP systems a year. It will also be able to produce 19 million wheel-speed sensors annually.
Back in January, Robest Bosch GmbH posted an 8.8% revenue rise to EUR51.4 billion in 2011 from the prior year, but return on sales before tax came in at around 5%, missing the privately owned firm’s target corridor of between 7% and 8%.
Much of this was thanks to strong growth internationally – while sales in Europe rose by 9.5% to more than €30 billion, Asia-Pacific and the Americas also made their mark, boosting revenues by 9% and 7%, respectively.
Looking ahead, Bosch said it expected to growth further in the current year.
“Whether we see stagnation or even a recession depends largely on how rigorously and quickly the necessary reforms are carried out in the eurozone,” chief executive Fehrenbach said.