German seat manufacturer Recaro is building a manufacturing plant in China, with production due to begin next year.
The Schwaebisch Hall-based company signed an agreement with Chinese authorities last week for the "double-digit million euro" investment in Qingdao. While the plant will focus on producing seats for the Chinese market, it will also help to serve customers throughout the Far East region, said Mark Hiller, managing director of Recaro Aircraft Seating.
As Asia will be the "biggest market for aircraft seats in the future", the move was "strategically important" for the company, he added.
According to Recaro, it will be the first international aircraft seat supplier to launch production operations in China.
This is scheduled to begin in 2013.
Manfred Buechner has been appointed general manager for the new facility.