SHANGHAI, Aug 18, 2016 /PRNewswire/ -- The Schaeffler Group signed a cooperation agreement with a visiting delegation from the Hunan provincial government on August 17th at Anting, the headquarters of Schaeffler Greater China. Under the agreement, Schaeffler will invest in a new production base in Xiangtan, Hunan province, with a view to expanding the company's production capacity in Greater China and better serving customers in both the domestic and international markets. Witnessed by Dr. Zhang Yilin (right 4th in the rear), CEO Schaeffler Greater China, and Zhang Jianfei (left 4th in the rear), Vice Governor of Hunan Province, the investment agreement was signed by Guenther Werner (right in the front), Schaeffler Greater China COO, and Sun Yinsheng (left in the front), Party Secretary of Xiangtan Economic and Technology Development Zone of Hunan province. Witnessed by Dr. Zhang Yilin, Regional CEO Schaeffler Greater China, and Zhang Jianfei, Vice Governor of Hunan Province, the investment agreement was signed by Guenther Werner, Schaeffler Greater China COO, and Sun Yinsheng, Party Secretary of Xiangtan Economic and Technology Development Zone of Hunan province. Specifically, Schaeffler will invest in the phased construction of a new production base in Xiangtan city, Hunan province. The first phase of the project will occupy a total area of around 20 hectares and the first plant, which will manufacture automotive parts and precision bearings, is scheduled to enter operation by the end of 2018. "Since 1995, when Schaeffler began investing and building production plants in China," said Dr. Zhang Yilin. "We have focused on penetrating and expanding into the Chinese market. Schaeffler has already established a close cooperative relationship with all of the country's major automobile manufacturers and supporting manufacturers, as well as customers in a diverse range of industrial sectors. Under the group's strategy 'Mobility for tomorrow' we will continue contributing to the development of China's automobile and industrial manufacturing industries, and look forward to progressing hand-in-hand with the economic and social development of Hunan." Schaeffler's decision to build a new production base in Xiangtan was inextricably linked to the area's excellent geographical location, infrastructure and talent base. Situated only an hour's drive from the provincial capital Changsha, or 15 minutes away by high-speed rail, Xiangtan is also served by Hunan's largest river, the Xiangjiang, which connects directly to the Yangtze River. In order to take full advantage of the abundant local talent and educational resources, Schaeffler has already planned to set up local training centers and pre-production centers for training workers and technicians. In the future, Phase II of the project will involve the construction of a second plant, a logistics center and a training facility. Dr. Zhang Yilin said, "Schaeffler's investment into building plants in Hunan demonstrates our confidence in the Chinese market. I believe that our base here in central China—near to our customers in the west, such as in Chengdu and Chongqing, and in the south—will effectively complement our bases in the Yangtze River Delta cities of Taicang, Nanjing and Suzhou, further optimizing the deployment of Schaeffler's production capacity in China."