LISTED on the mainboard of the Singapore stock market, China-based machine tools manufacturer, Bright World Precision Machinery Ltd, is in for a busy time ahead.

The company is firming up plans to expand its production and has set up a research and development (R&D) centre in Shanghai to support its growing business activities, said its Singapore-based chief financial officer, Ms Tan Pia Tiang.

She is upbeat about the prospects for the metal stamping industry, of which Bright World in an important player in the mainland.

''We believe that China will continue to be the world's factory and production base for all forms of manufacturing due to its low operating cost advantage," Ms Tan told AsiaOne.

''This is advantageous to the Company as the stamping industry forms the backbone of many manufacturing industries including automobile, hardware, electrical appliances and electronics."

According to the Association of China Machine Tools Industry, the value of China's machine tools output surged 25 per cent last year to US$16.25 billion, of which US$3 billion was exported. The industry group also expects a further 15 per cent growth this year.

The burgeoning automobile manufacturing industry is likely to propel growth in the stamping industry since automobile manufacturers are one of the largest purchasers of stamping machines, said Ms Tan.

Many leading automobile manufacturers such as Volkswagen AG, Honda Motor Co. and General Motors Corp. already have manufacturing facilities in China.

Daimler Chrysler AG, the world's fifth-largest vehicle manufacturer, in April this year announced plans to build Chrysler compact cars in China for export to the United States.

Giving an update on Bright World's plans since its initial public offering in April this year, Ms Tan disclosed that to expand production capacity, ground work has begun in an adjacent plot of land, on which the company intends to acquire and build the new factory. Estimated production floor area when completed will be 100,000 sq m.

Meanwhile, Bright World has completed its R&D centre in Shanghai, which houses top engineers and it is preparing to roll out new products such as new CNC machines, cutting, bending and other types of metal forming machinery.

The company has also set up a one-stop sales and service hub In Guangdong province, which will raise the presence of the company's products in the Guangdong market. It is a significant move as the model of putting sales, service and parts warehouse together in one location is unique to Bright World.

''If this is successful in raising sales and service quality, the company may consider replicating this across other parts of China,'' Ms Tan added.