Finnish battery maker European Batteries Oy will build a production center in north China’s city of Tianjin, local officials confirmed on Tuesday.
According to China Daily, the center, located in Tianjin’s Binhai New Area, will manufacture lithium-ion batteries for hybrid and electric vehicles, according to an agreement signed by the company and the local government on Monday.
The center will be built with an investment of 2 billion yuan ($318 million) and have an annual output value of 4 billion yuan after becoming fully operational.
The first phase of the project will become operational in October, according to the agreement.
The company’s board chairman Eero Nuutinen said at a signing ceremony that he is confident about the investment, adding that his company will introduce new technology and products in order to further explore the Chinese market.