LOHR, GERMANY—Bosch Rexroth AG has invested $10 million in a new manufacturing plant in Wujin, China.

The Wujin plant is the company's third facility in China. The facility became necessary due to capacity bottlenecks at the previous site in the same area.

The Wujin plant is the largest foreign-owned facility in the area. It employs 400 people, and the workforce will increase to about 500 by year-end. Initially, the plant will produce hydraulic cylinders and complete power units. Further production lines are planned for pneumatics, electric drives, controls and linear motion technologies.

"Thanks to the proximity of our factories to our customers, Bosch Rexroth is experiencing above-average growth across the whole Asian region," says Manfred Grundke, president of sales automation at Bosch Rexroth AG.