Nobilia and Raumplus, Germany's two leading home furnishing brands, will join hands to build a high-end wardrobe manufacturing base in the city of Wuxi, eastern China's Jiangsu Province.

The two companies will form a joint venture covering an area of 20 hectares in Wuxi High-tech Zone and introduce flexible automated production lines from Germany to build their largest customized wardrobe manufacturing base in the Asia-Pacific region, according to the agreement they signed Friday.

Annual sales income of the new base is expected to reach 3 billion yuan (around 437 million U.S. dollars) by 2026.

Huang Qin, mayor of Wuxi, said China's rapid growth has led to the continuous improvement of people's living standards, which means the domestic market of high-end customized furniture is particularly promising.

Nobilia, one of the largest kitchen cabinet manufacturers in Europe, entered China in 1997. Raumplus is a leading brand of sliding door and closet systems in Europe.