The new factory will build Gamesa's G8X-2MW turbines and have a capacity of 500MW a year. This will see Gamesa's manufacturing capacity in China rise to 1500MW. The company started production of the G8X-2MW in 2010.
The facility will be located in the city of Da'an in the province of Jilin in northwestern China.
Gamesa opened its first Chinese factory in 2000. Its other four plants manufacture blades, nacelles, generators and assemble gearboxes. 15% of Gamesa's business is in the country.
Speaking about the deal, Gamesa chairman Jorge Calvet said: "Gamesa is one of the main investors in the wind power industry in China. The groundbreaking on our new facility strengthens Gamesa global position and it represents a great opportunity to keep involving in the China wind industry expansion and serving our clients in the province that the government has targeted to have the highest wind power capacity in all of China."
In February, Gamesa announced the start-up of its first facility in India. The new plant, located in the Red Hills area near the southeastern city of Chennai, will produce 850KW machines and has an annual production capacity of 200MW.
There has also been speculation Gamesa is planning to build a factory in the UK and understood to be in talks with its government about plugging the gap in the market left when Danish manufacturer closed its Isle of Wight plant last year.