German machine tool maker Schwabische Werkzeugmaschinen GmBH (SW) has set up its first factory outside Germany in Suzhou Industrial Park in East China's Jiangsu province.

The company says it plans to establish smart assembly lines and an automatic production department.

SW is instilling in China the concept of German Industry 4.0, contributing to the development of "Made in China 2025." The machine tool manufacturer may be best known for its multi-spindle technology.

SW says that as China goes through manufacturing transformation and upgrades, the concepts of intelligent manufacturing and industrial automation are becoming more popular.

High-grade numerical control machine tools are among those encouraged by the "Made in China 2025" development plan. Among the others are large aircraft, aero-engines and gas turbines, civil aviation, smart green trains, fuel-efficient and new energy vehicles, marine engineering equipment and high-tech ships, intelligent power grid equipment, nuclear equipment, and high-end diagnosis and treatment equipment.