(Yicai Global) Dec. 22 -- Danish pump behemoth Grundfos Holding will spend USD100 million building a new high-end manufacturing plant in eastern China to speed up the supply of products to local customers.

The Bjerringbro-based firm penned an agreement to construct the factory that makes energy-saving pumps and water supply systems in Jiangsu province's Changshu, Yicai Global learned. The 4.7-hectare facility is expected to be ready by 2023 and reach its full capacity in 2026.

Grundfos decided to build a factory in China because of its long-term commitment to the developing market and its clients' demand for faster production, a company insider said to Yicai Global. The firm would lose some opportunities unless it lives up to its customers’ expectations, the person added.

"We can say that the project in China accelerates our research and development, as well as design and production," the insider added.

After more than two decades since Grundfos entered China's mainland, the market has become key for the pump manufacturer. In 2020, the firm earned more than CNY3 billion (USD470.8 million) in sales in China. Early this year, Grundfos moved the global headquarters of its commercial building business to Shanghai. Its headcount in the Asian country is about 2,000 employees.

Editor: Emmi Laine, Xiao Yi