AUTO supplier Continental AG will invest US$89.5 million to build a new plant in Changshu, northwest of Shanghai.

With a 70,000 square-meter plot, the facility will produce hydraulic brake products including calipers for front and rear axles, as well as brake boosters for car makers in China, Japan and South Korea, the company said.

The new plant in Jiangsu Province is expected to start production in the fall of 2008. It will have an annual capacity of two million brake boosters and 4.6 million brake calipers by 2011 after construction is completed in 2008.