(Yicai Global) Feb. 17 -- Midea Group has held a ground-breaking ceremony for an CNY11 billion (USD1.74 billion) plant in China’s eastern Anhui province that will make parts for new energy vehicles. It is one of Chinese home appliance giant’s biggest investment projects.

The factory in Anqing will produce power steering motors, electric compressors, and drive motors, Foshan-based Midea said in a statement yesterday. When completed, it will be able to turn out 60 million sets a year and generate annual revenue of CNY40 billion (USD6.3 billion), the firm said.

Aiming to become a NEV systems-level solutions provider, Midea said it plans to invest a further USD1 billion over the next decade to overcome technical difficulties. The company will also build a research and development center at the Anqing plant.

A large number of nonautomotive firms are getting into the fast-growing market for new energy vehicles. Midea’s unit Welling Auto Parts unveiled a total of five auto parts for NEVs last May and mass production has started following on-board testing.

It is not a problem for Midea to enter the NEV industry, Securities Daily cited He Qi, senior analyst at big data services provider Analysys, as saying, the question is whether its core parts and intelligent driving systems will meet quality standards and be taken up by carmakers.

Editor: Futura Costaglione