HANSGROHE AG, a German sanitary products maker, expects sales in China to rise more than 40 percent this year as it expands production capacity to meet rising demand.

The firm had sales of more than 20 million euros (US$31.5 million) in China last year, up around 40 percent from 2006, said Frank Ulbrich, president of Hansgrohe China. The growth rate "won't be lower" this year.

Hansgrohe is benefiting from China's construction boom with more hotels and real estates being built as well as rising purchasing power from the retail sector, Ulbrich said.