World leading electric appliance producer Philips will set up a global research and development (R& D) center in this east China municipality, said Gerard Kleisterlee, president and CEO of the Dutch company, Wednesday.

Gerard Kleisterlee was in Shanghai to attend a ceremony marking the 20th anniversary of Philips' investment in China and an innovation exhibition.

The company will invest 40 million euros for the establishment of the R&D center, Gerard Kleisterlee said.

He said the company chose Shanghai as the site of its global center because of the city's favorable investment environment.

He also said he hopes the center, after its establishment, can help boost the growth of the company's business in the Chinese market in the future.

Shanghai Vice Mayor Zhou Yupeng said, when meeting Gerard Kleisterlee, that the city will create a more favorable environment for overseas businesses by improving its management mechanism and strengthening its efforts in intellectual property rights protection.

Zhou said that the city hopes Philips can participate in the World Exposition to be held in Shanghai in 2010.

Gerard Kleisterlee said that the company can provide technological support to the event.

Philips set up its first venture in China in 1985, and the company now has 35 businesses in the Chinese mainland, with a total investment of 3.4 billion US dollars.

Source: Xinhua