Global medical devices manufacturer Boston Scientific has announced its plans to construct its first factory in China, reported Reuters.

The plant will be located in the Lingang New Area of the Shanghai Free Trade Zone. Lingang already comprises factories belonging to notable companies such as Tesla.

Boston Scientific CEO and chairperson Michael Mahoney attended the signing ceremony in China and an agreement has already been signed with local officials in Lingang.

The company has not yet disclosed the amount of investment it is planning to put into the development, and the project will likely not be commissioned for several years, reported Yicai Global.

The move indicates Boston Scientific's interest in further bolstering its regional manufacturing capabilities in its global supply chains and its desire to localise production for the Chinese market.

According to industry sources cited by Yicai, Boston Scientific may be able to lower its manufacturing costs and profit from local legislation if it establishes a facility in the country.

The company has previously worked on a development in China, producing a prototype ultrasound system.

In December last year, the business acquired a majority share of approximately 65% in Chinese medical technology company Acotec, which provides solutions for a number of interventional procedures.

Boston Scientific and Acotec will partner on the research and development, production, and commercialisation of medical devices in the future.

Last year, medical device maker Medtronic also announced its plans to build a plant in Lingang.