Chassis components and airsprings for commercial vehicles for the Chinese automotive industry have been produced there since July.
The plant has a total area of 8,000 square meters and employs 100 people, with plans to add 100 jobs through 2014.
The company said it will be investing about $19.5 million in production and infrastructure at the Yantai facility until 2014.
Freudenberg Immobilien Management GmbH will be investing almost $4.9 million in new buildings. Key reasons for selecting the Yantai location included proximity to customers and suppliers, the presence of a skilled work force as well as the favorable location on the Yellow Sea on the Eastern Chinese seaboard opposite the Korean coast.