Germany's Schaeffler Group plans to invest 200 million euros ($256 million) in China to build two plants to manufacture rolling bearings and powertrain components, reports the business news Web site Caijing.com.cn.

Company spokesman Hou Li said Schaeffler is scouting two locations in east China. The plants will begin production in 2012, according to Caijing.

Schaeffler launched operations in China in 1997, setting up its first plant in Taicang to manufacture bearings and engine parts. It has five factories plus an R&D center in Shanghai.

Customers include Shanghai General Motors Corp., Shanghai Volkswagen Automotive Co., China FAW Group Corp., Chery Automobile Co. and Shenyang Brilliance Jinbei Automotive Co.