ebm-papst is investing $AU47.2 million in the construction of a new plant in China to provide products to the Asian region.

The 27,000 square metre plant is part of the company's internationalization strategy "Structure 2020" which includes strengthening its presence in Asia.

Chair of the managing board of the ebm-papst group, Stefan Brandl, said demand for the company's products are growing in the region driving the need to increase production.

He said ebm-papst already has a plant in Shanghai and its new facility will be based in Xi'an, the Chinese capital of the Shaanxi province. Construction will be completed mid-2019.

President and CEO of ebm-papst in China, Thomas N├╝rnberger, said there are plans for the facility to also supply countries such as Indonesia, the Philippines and Thailand.

ebm-papst has been represented in China since 1996 and currently employs around 1,800 staff at its Chinese sites.

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