The new energy and daily chemicals production lines of Morimatsu (Jiangsu) Heavy Industry Co in Changjiang town, Rugao began being upgraded on Nov 19, local media reported.

The project consists of two phases, with the first focusing on producing skin care products and cosmetics and the second on pharmaceuticals and electronic products. 

It will receive a total of 1 billion yuan ($145 billion) in investment and is expected to create 1,000 jobs and more than 1 billion yuan in annual output after reaching full production capacity.

The project is meant to promote innovation and enhance its core competitiveness, said Gu Liuzhong, vice-mayor of Rugao, at the commencement ceremony.

Gu said that the project will also help push forward the transformation and upgrading of the intelligent equipment manufacturing industry in Rugao.

He promised that the local government will continue to provide high-quality services to companies and work to improve the city's business environment.