CW Bearing USA, a Chinese bearing manufacturer, has broken ground in Michigan on a new North American headquarters for design, sales and advanced manufacturing.

With an estimated investment of $25.9 million, the new facility, covering 50,000 square feet in Northville Township, a Detroit suburb, is expected to start operations late next year and create 125 jobs, including assembly line workers, engineers, management and sales staff, according to a company press release on Tuesday.

The facility will focus on manufacturing an integrated ball nut, a technological breakthrough by the company, for automobiles' electronic power steering (EPS) systems that are gradually replacing hydraulic steering systems.

The bearing component can help reduce exhaust emissions as well as gasoline consumption. By integrating two bearings to the two ends of a ball nut instead of the traditional way of attaching the two bearings to it, the ball nut can realize "zero friction" or minimize the energy loss, according to Hu Lirong, president and CEO of CW Bearing USA.

The new factory is projected to generate revenue of $20 million a year with an annual increase of 20 percent, he said.

"This facility, located near the heart of the North American auto industry, will allow us to better support our ‘Customer First' philosophy by increasing both our global manufacturing and technical capabilities, allowing us to bring more value and versatility to our growing customers," said Jay Click, director of sales at CW Bearing USA.

It is also expected to help increase the company's market share in the US and guarantee timely delivery of its products, Hu said.

The establishment of the new facility also is seen as a positive sign of economic growth and has gotten support from the local and state governments.

Northville Township has offered property tax abatement, and Michigan approved the project for its Business Development Program in August. The incentive program provides grants, loans or other economic assistance to highly competitive projects that create jobs or provide investment.

Under the program, CW Bearing can benefit from a performance-based grant of up to $550,000, which will be disbursed when the designated milestones are reached.

"CW Bearing's decision to locate its US headquarters in Southeast Michigan signals to corporate leaders across the globe that the Great Lakes State offers great opportunities for their business expansion," said Michigan Governor Rick Snyder in an earlier press release.

Established in 1994 in Southern California, CW Bearing USA has grown into a major supplier of ball bearings to automakers such as Chrysler, Ford and General Motors. It is currently headquartered in Novi, Michigan, with sales and logistical offices in Tustin, California; St. Louis, Missouri; and Charlotte, North Carolina.

It also provides sales, engineering and logistical services for original equipment manufacturers of power tools, specialty electric motors, outdoor power equipment and appliances.

One of China's top 500 mechanical manufacturers and top 10 bearing makers, CW Bearing is a subsidiary of privately owned Cixing Group Co, headquartered in Zhejiang province, which specializes in a variety of radial and angular contact ball bearings as well as needle bearings and other specialty bearing products that have been sold to companies in Europe, Asia, Latin America and North America.