CHENGDU - Construction on Siemens' benchmark digital factory, Siemens Electronics Works Chengdu, started Thursday in Chengdu, the provincial capital of southwest China's Sichuan province.

The factory, with a floor space of 40,000 square meters, is situated in the Chengdu High-tech Development Zone and is expected to create 1,000 jobs for local people. The first phase of the factory is scheduled to be completed and start operation in early 2013.

The factory will produce high-end PLC-model (Programmable Logic Controller) products for the industrial market of China and worldwide.

"Siemens' investment will a big boost to the upgrading of the local electronics industry, and Chengdu will provide support and quality services to Siemens," said Ge Honglin, the mayor.

Ge joined Marc Wucherer, president of the Industry Sector of Siemens North East China, in helping lay the foundations for the factory on Thursday.

Chengdu is of great importance to Siemens' footprint in China. Siemens will continue to support and be involved in Chengdu's economic and social development, Wucherer said.

In October, 2011, Siemens and Chengdu jointly announced their intention to build Siemens' largest digital factory in China.

The facility will be highly automatic and environmentally friendly, with advanced equipment guaranteeing green credentials and orderly workshops, according to Siemens.

In a digital factory, the entire product life-cycle from design, production, logistics, marketing all the way to sales will be controlled by integrating the use of IT systems throughout the value chain, according to the Siemens' website.

Siemens' investment in Chengdu dates back to 1996 when it built its optical fiber works in the city.