We will penetrate the Chinese auto market by combing our technology with China Automotive Systems (CAAS) marketing and manufacturing team, said Michael Young, CEO of 3S.

The joint venture, which will start production in August, will be based in Hubei Province of People’s Republic of China. It is expected to produce an initial annual output of 4.5 million sensors with estimated net sales of $40m. 3S also hope it will serve as a manufacturing base for the company’s focus on system integration in US.

Exports of the new sensors are likely to begin in 2008.