German steelmaker Thyssen Krupp has opened a new auto components factory in Shanghai where it will produce steering and damper systems for the Chinese market.

The 100 million Euro plant will service what Thyssen Krupp CEO Heinrich Hiesinger called ‘the most important growth market’ for the company. “Our capital goods and technology businesses offer answers to central global issues such as demographic change, urbanization and climate protection, which are particularly relevant in Asia and China,” he said, adding that Thyssen Krupp will be opening another factory in China in the autumn.

Thyssen Krupp’s component technology business currently operates 10 production sites in China and employs over 4,000 people. It generated 800 million Euros in sales during the fiscal year 2012/2013 of which automotive components accounted for two thirds of the total.

Karsten Kroos, CEO of Thyssen Krupp’s components technology business, said the company was keeping pace with the rapid growth of the auto market in China. “In the past two years we have invested over 300 million euros in new components plants alone,” he said, adding that since 2013 the company has launched production programs for new products at four sites. “We aim to continue growing at this pace in the Asian market,” said Dr. Kroos.

An additional factory producing cylinder head modules will open in Changzhou before the end of the year.