German automotive giant Bosch is to set up a US$40 million foreign-owned factory to make diesel fuel injection systems in Jiangsu Province's Sino-Singapore Industrial park. Production of emission-friendly pumps is due to start early next year. The pumps could become a main component for diesel engines as the mainland's vehicle industry prepares for tougher environmental standards, according to Tom Zetterstroem, marketing manager for Bosch's Shanghai office. 'This technology is commonly used for buses and light and medium duty vehicles. There will be a large potential for use in these commercial vehicles as soon as emission regulations are strictly implemented,' he said. Mainland car production is expected to top 550,000 vehicles this year, with about 30 per cent using diesel engines. The new firm, called Bosch Automotive Products (Suzhou), is a joint venture between Bosch and Japan-based Zexel Corp.