Japanese firm Sumitomo Chemical is planning to open a new polypropylene (PP) compounds production plant in Wuxi, China to bolster its presence in the automotive materials market, the company announced in a release Tuesday.

The Wuxi facility is slated to commence operations early next year, producing high-performance materials used in automotive bumpers, interiors, and home appliances. China is one of the biggest automotive markets across the globe. The company said demand for PP compounds for car interiors and exteriors has risen over the past several years as environmental regulations and safety demands have grown more stringent.

Sumitomo established a PP compounds plant in Changdu City in 2016 where trial products are currently being manufactured.

“Following the facility in Chengdu, Sumitomo Chemical established the Wuxi plant as a production facility in the rapidly growing Huazhong region of China,” the company said in a release. “Setting up the Wuxi plant as our fifth production facility in China, we aim to further increase our presence through a widespread supply chain for Chinese automobile manufacturers and home appliance makers in the region and making the best of our timely response to customers.”

The company said it plans to increase its PP compounds business in the coming years.