Atlas Copco this week begins construction of a new manufacturing facility for compressors in Wuxi, China, to meet the growing demand for compressors from the Chinese and other Asian markets.

The investment of approximately SEK 150 million (about U.S. $22.9 million) includes the construction of a new compressor assembly factory, a test lab and a center for research and development. The new factory and the upgrade of existing facilities will allow for increased production of portable compressors, industrial and oil-free air compressors as well as compressor elements.

“This investment will enable us to even better meet the needs of our local customers and thereby support the group’s profitable growth in the Asian market,” said Stephan Kuhn, business area president of Atlas Copco Compressor Technique. “We will also be able to focus our innovative efforts on local development of energy-efficient products that meet upcoming more stringent efficiency requirements in China.”

Located about 10 kilometers from the current Atlas Copco Wuxi plant, in China’s Jiangsu province, the new factory occupies a land surface of 45,000 square meters. The new production facility is planned to be operational in July 2012, serving both the Construction and Compressor Technique business areas.

Atlas Copco currently has more than 5,000 employees in China, working at 13 manufacturing facilities and more than 100 offices around the country.

Based in Stockholm, Sweden, Atlas Copco produces compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems.