Bosch Packaging Technology has announced plans to invest €17m (CNY150m) to build a second production facility in Chengdu, China, in order to expand its regional committment.

Operations at the facility, which for now will be set up in a leased production hall, are expected to start at the beginning of 2012 and construction of a new plant will begin in 2014.

The first phase of the expansion is scheduled for completion in 2015, when a building of 13,500m² of floor space will be ready for occupation and the production area will occupy 7,200m² of the total floor space.

The company will primarily serve the regional packaging machine market which is estimated to grow by 15% per annum over the coming years.

The facility will enable the company to serve the pharma, food and confectionery sectors with packaging machines of medium output capacity.

Friedbert Klefenz, Bosch Packaging Technology president, said in the current year the company hopes to reach sales of around €85m (CNY750m) in the Chinese market with products manufactured either locally or in predominantly European Bosch factories.

The move follows Bosch’s strategy to invest in the western and middle regions of China.