Thyssen Krupp, one of the Fortune top 500 from Germany, is building a world-class auto chassis production base in this capital city of central China's Hubei Province.

A foundation laid ceremony for the joint venture was held recently at the Donghu New and High-Tech Development Zone of Wuhan, according to local sources.

The German company has invested 500 million yuan (60.2 million US dollars) in the joint venture, holding 51 percent of the stake, while its Chinese partner, the Wuhan Zhongren Auto Parts Co., takes the remaining 49 percent, the sources said.

The joint venture will employ advanced technology from Germany, France and Britain to produce auto chassises, large punched parts for auto bodies and assembly parts.

Its first-phase project, involving 150 million yuan (18.1 million US dollars), will be completed in June 2005. It hopes that the annual volume of business will surpass more than 600 million yuan (72.3 million US dollars) in five years, the sources said.

Boasting the world's largest emerging auto market, China is forecast to produce more than 5 million motor vehicles this year.