The launch ceremony for the construction of a plant that will produce the latest key components in internet of things technology, took place in Nanming district in Guiyang, capital of southwestern Guizhou province on Dec 14, according to local officials.

The ceremony marked the start of construction of a plant that will make communications modules for the 5G NB-IoT – or Narrow Band Internet of Things.

It was held at Nanming electronic information industrial park in Nanming district.

According to local media reports, the plant will cost 120 million yuan ($17.16 million) and it is expected to start production of 5G IoT communications modules in October in 2020.

Officials said the project will adopt a terminal communications chip which has been successfully launched by the project's upstream partner.

It will cooperate with the first-class domestic hardware research and development team to design and develop a new type of NB-IoT ultra-small communications module, an integrated communications chip and RF front-end and rich peripheral interfaces.

The Nanming electronic information industrial park where the project is located covers an area of 247 mu (16.47 hectares), with a total construction area of about 280,000 square meters.

Officials said the industrial park will follow the new industrial development strategy of "high-end, green and intensive", based on the electronic information industry.

The industrial park will focus on the cultivation of industrial clusters in such areas as integrated circuits and intelligent internet automobile parts.

It will build an intelligent industrial park integrating standard factory buildings, support housing, office and leisure facilities and strive to promote the integration of big data and the real economy.