Israel-based global precision irrigation firm, Netafim, has officially opened its first production plant in China.

Located in Yinchuan, capital of the northwest Ningxia Hui Autonomous Region (Ningxia), the facility will employ Netafim’s state-of-the-art smart irrigation technology to produce a range of precision irrigation solutions from drip lines to full-operation solutions.

With less than 200 mm of rainfall per year, but offering access to the Yellow River and a thriving wine industry, Ningxia is a targeted region by the Chinese government for investment in precision irrigation and water saving technologies.

Netafim is already entrenched in the global wine sector and has existing collaborations with U.S.-based Domaine Chandon for the establishment of a high-end vineyard in Ningxia, and is working with a second wine producer in the region that supplies wine to China’s global embassies.

Given Ningxin’s growing reputation, the integral importance of precision irrigation in vineyard management, and the high level of investment in the region in support of it developing into an important wine production base in the country, Netafim’s investment is a “natural step” according to the company.

“The opening of this top-of-the-line facility is testimony to Netafim’s commitment to investing in China, one of our strategically important markets with significant growth potential,” said Netafim CEO Ran Maidan in a company statement. “We greatly appreciate the support given by the Ningxia government, and hope to contribute to its efforts in carrying out its ambitious agricultural development plans.”