German manufacturer DBW Advanced Technologies GmbH will build a factory for the production of automobile parts in Taicang, Jiangsu province, according to an online signing ceremony on Sept 8.

The factory has a registered capital of $12.5 million and is expected to start operating in 2020.

It will be run by DBW Automobile Parts (Shanghai), a joint venture between DBW Advanced Technologies GmbH, who hold an 80 percent stake in the company, and Shanghai Mingteng Composite Material Co.

Hendrik Murmann, CEO of DBW Automobile Parts, said during the signing ceremony that DBW has high hopes for the Chinese market, and that the Taicang factory will be another milestone for the company.

The project was initiated in June 2019 but later delayed due to COVID-19. The municipal commerce bureau negotiated with the company and the two parties finally reached the agreement online.

Taicang has always attached great importance to foreign cooperation and has been cooperating with Germany for 20 years. It is home to over 340 German enterprises.