The plant will produce instrument panels, door panels, floor consoles, seats and overhead consoles, said Johnson Controls Group Vice President John Moulton.

The plant will employ 700 workers and will open in 2012, when the Changsha assembly plant under construction by Fiat and Guangzhou launches vehicle production.

Moulton did not disclose Johnson Controls' ownership in the venture, but noted that it generally has a 50 percent ownership of its 24 other joint venture factories in China.

The Changsha investment is an outgrowth of Johnson Controls' 2008 joint venture with Guangzhou Auto, which began producing interiors for the automaker's self-branded cars last year.

Moulton said the company established operations in Guangzhou because it wanted a base to serve automakers in southern China, especially around Guangzhou.

"The whole southern part of China is a huge growth area," Moulton said. "If you want to be a leading player in the south part of China, you really have to make a factory there."

Johnson Controls has another joint venture in Guangzhou with Nissan to make seats, and hopes to leverage its work with Guangzhou to secure interiors contracts with other Japanese automakers.

Guanzhou also has joint ventures with Toyota and Honda, which have assembly plants in the area.