The foundation-laying ceremony takes place for a new automobile parts factory funded by Japan's Ondo Co in Su-Tong Science and Technology Park in Nantong, in East China's Jiangsu province, on June 18. [Photo/ntjoy.com]

An automobile parts subsidiary of Japan's Ondo Co began construction of a major factory in  Su-Tong Science and Technology Park in Nantong, East China's Jiangsu province, on June 18, according to local media.

The project will cost a total of $108 million and covers an area of more than 3 hectares.

On completion, the new plant is expected to produce 1.19 million sets of planet gears annually. An epicyclic, or planetary gear train consists of two gears mounted so that the center of one gear revolves around the center of the other, in a configuration analogous to the Solar System. Typically, planet gears are mounted on a movable arm or carrier.

It is the second factory Ondo has set up in the park, following in the footsteps of ONDO SHINSHO Precision Technology Corporation, the company's first overseas manufacturing base founded in 2012.

Founded in 1947, Ondo is a leading international manufacturer of differentials and gears for the automotive industry. 

The company operates nine factories around the world and has been a key supplier to leading car manufacturers including Mazda, Toyota and Mitsubishi Heavy Industries.

Before starting on its new factory, Ondo expanded its first factory three times, with a total investment of $165 million to date.

In recent years, Sutong park has made great efforts to build itself into an industrial cluster for  automobile parts manufacturing.

The local government has rolled out preferential policies and improved the business environment, to attract more investment and has successfully brought in international companies which have introduced high-quality development.