Stockholm, Sweden-headquartered Atlas Copco has begun construction of a new production facility in China for its gas and process division.

The company is investing more than EUR10 million in the project to strengthen the position of its gas and process division in the Asian market and to position itself for future growth in customer segments such as chemicals and petrochemicals, air separation industries, and other applications.

The facility, to be completed and operational in late 2010, is located in Shanghai and will serve China and other countries in the region. Atlas Copco will assemble and package its entire range of turbocompressors and expansion turbines at the new facility, improving overall efficiency in packaging, order handling, as well as its aftermarket presence.

According to Stephan Kuhn, the business area president of Atlas Copco Compressor Technique, China, Korea, Japan, and Southeast Asia are markets with vast potential for turbomachinery solutions. He adds that producing closer to the customer will help the company be more efficient across the board, from purchasing of components all the way to the aftermarket.

As part of the investment initiative, Atlas Copco Gas and Process will also implement all relevant quality standards at the plant, including ISO certification and necessary local standards.