Tyco Electronics, one of the world's leading electronic components manufacturers, will launch two new facilities in China by next March in a bid to reinforce its production base in the country.

The new facilities are the electronics firm's second manufacturing plant in Kunshan of East China's Jiangsu Province, which will be established in November; and the expansion of its Shanghai Raychem plant, which will be completed next March, company officials revealed recently.

Tom Lynch, Tyco Electronics' chairman and chief executive officer, said China's fast growing economy has given the firm the confidence to expand.

"In the past, many foreign firms came to China to set up their manufacturing facilities because of the low labour costs. Now, they are attracted by the huge local market demand. This is the same for Tyco Electronics," Lynch said during the opening ceremony of the company's second plant in Qingdao last week.

"We need to strengthen our presence to better serve this market," he said.

The new factory in Qingdao, with an initial investment of US$20 million, is focused on the manufacture of electrical terminals and connectors for the industrial and commercial industries.

An additional investment of US$30 million will be injected into the plant in the next three years.

The facility covers 23,400 square metres and will initially employ about 2,000 people.

"This new manufacturing plant, together with our existing Qingdao factory, which we opened six years ago, will enable us to better serve the rapidly growing local market," said Juergen Gromer, vice-chairman and president of Tyco Electronics.

Gromer said that the facility will also be able to provide support to the firm's customers in China building electrical and electronic products for export around the world.

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