China Automotive Systems has started construction of the first stage of a facility in Sao Paulo, Brazil designed for the assembly of its steering units for sale in South American markets.
The new Brazilian facility will be assembling complete steering products from components exported by the company in China.
The new facility will have initial capacity is 100,000 steering units and it can be expanded up to 700,000 units to meet growing demand.
The investment in this first stage is expected to be about $3m and commercial operations are expected to start in April 2015.
In August 2012, the company started exporting to customers in Brazil and currently it exports steering products to the Brazilian operations of China-based, Chery Auto and a global Tier-1 vehicle manufacturer, in addition to the aftermarket in Brazil.
China Automotive Systems chairman Hanlin Chen said: "We are building this facility to accommodate the growing interest in our steering products in the important South American markets.
"Chinese vehicle OEMs are setting up operations in the South American automotive markets. With this facility, we are positioned to supply these Chinese automakers as well as other vehicle manufacturers in these markets.
"We believe customers in South America are recognizing the value of our high-quality, advanced steering products to their vehicles.
"This facility will provide improved supply and service to strengthen our customer relationships. We look forward to further increasing our presence in South America and other global automotive markets."