Continental AG has begun construction of a new electronics plant in Shanghai. The plant will begin production in mid-2010.

Together with its partner Jiading Industrial Zone, the German automotive parts maker has invested 160 million yuan ($ 23 million) in the plant. Covering 74,000 square meters in Shanghai's Jiading district, the plant will employ 1,500.

The plant has a planned annual production capacity of 7.5 million electronic and hydraulic control units, 3 million printed circuit boards for clusters, and 5 million door control modules and gateways. It is expected to reach full capacity by 2015.

According to Continental, parts made at the plant will be mainly supplied to OEMs in Europe, China, Japan and Korea.