Sensata Technologies, Chinese Government Agree on Expansion in Jiangsu Province
Sensata Technologies Holding N.V. has signed an agreement with the Baoying government in China’s Jiangsu Province to increase its investment in Baoying. Under the agreement, the government will make land adjacent to Sensata’s existing facility available for constructing a five-story building totaling 350,000 square feet. The government is responsible for erecting the building. Sensata will lease the facility for up to 15 years and then assume full ownership. Construction is expected to begin in February 2011 and be completed at year-end.
In turn, Sensata plans to invest US$50 million in capital from 2011 – 2015 contingent on continued growth in demand for its products in China’s domestic market and worldwide. Sensata’s investment will be in the form of cash, equipment, or intellectual property.
"This agreement will lay the groundwork for further expansion of our manufacturing capacity in Baoying and will enable us to meet growing demand for our products both in China and around the world," said Richard Dane, Senior Vice president of Sensata’s global operations. "We’ve been manufacturing in Baoying since 1996, and we value the strong working relationships Sensata has with local and provincial governments in Jiangsu Province."