President Xi Jinping and German Chancellor Angela Merkel witness Marijn Dekkers (second from left), CEO of Bayer AG, signs agreement to invest around 100 million euros to significantly increase the production capacity of its plant in Beijing in Leverkusen, Germany, on Friday.[Photo provided to China Daily]

Bayer HealthCare, a subsidiary of Bayer Group, will invest around 100 million euros ($137 million) to increase the production capacity of its plant in Beijing in preparation for further demand for its products in China, the healthcare and medical manufacturer released on Monday.

The agreement was signed during President Xi Jinping's visit to Germany on Friday. The capacity expansion is planned to ensure the supply of the manufacturer's products, including cardiovascular and anti-diabetes medications.

The expansion will include logistics areas for fully automated material handing, analytical laboratories and high-speed packaging lines.

"This investment will make Beijing the largest pharmaceuticals packaging site in Bayer HealthCare's global production network," Alok Kanti, managing director of Bayer HealthCare China, said in a statement.

Bayer HealthCare has four production sites in China and has already established a center for research and development in Beijing.