Swiss engineering group, ABB, one of the largest in the world, has announced plans to invest up to US $300 million in Xiamen over the next five years.

In a statement published on its website, ABB said the fund will be used to set up a power products production hub in the city of Xiamen, in the province of Fujian.

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ABB Chief Executive Officer, Ulrich Spiesshofer, said the investment underlines the company's commitment to further invest in China amidst the economic slowdown and further shows its confidence in the country and in the city of Xiamen.

The production hub for power products planned by ABB is in addition to its existing products that have resulted to the saving of up to 200 billion kilowatt hours of power in the country last year.

The 200 billion kilowatt hours power saving is enough to power one Chinese city with 20 million people for at least two and a half years.

Aside from the US $300 million investment in the pipeline, ABB is also set to make further hires in China with plans to bring its total staff in the country to 20,000 people.

ABB's investment announcement came at time that the Chinese Academy of Engineering announced that the country will have a total installed nuclear power capacity of 40 million kW by 2015.

By 2020, China will have over 60 million kW of nuclear power capacity, said Ye Qizhen of the Chinese Academy of Engineering. China currently has 17 nuclear power plants that have installed capacity of 14 million kilowatts.

Experts said China will transition to nuclear power and other environment-friendly sources of energy as it currently battles heavy pollution caused of coal-fired power plants, manufacturing plants, vehicles, and even on-street barbecuing.