China's leading railways manufacturer, China South Locomotive and Rolling Stock Corporation Ltd, unveiled a plan on Wednesday to set up its ASEAN manufacturing center in Malaysia, citing great market potential in the region as well as close China-Malaysia relations.

CSR Zhuzhou Electric Locomotive Co Ltd, a subsidiary of CSR and an active player in Malaysia's mass transit projects, announced the plan for the facilities located in Batu Gajah, Perak State, some 200 kilometers from the capital Kuala Lumpur.

The company is investing up to 400 million ringgit ($126.7 million) in the "CSR ASEAN Rail Center", which would cover production, assembly, testing, overhaul and refurbishment, said Luo Chongfu, the company' s vice-president of investment and strategic development.