In early September, 25 children in the Kangqiao neighborhood in suburban Shanghai were diagnosed with abnormally high levels of lead in their blood, the agency said in a statement.

Johnson Controls' plant is located in that area. An initial investigation found the plant to be the main source of lead emissions in the area, according to the agency.

Meanwhile, Shanghai Xinminyuan Auto Accessories Co., a supplier of oil reservoir caps, also has been ordered to suspend operations for producing lead-containing products without proper authorization, the agency said.

Xinminyuan Auto is located in the same area as Johnson Controls' factory.

Last week, Johnson Controls said it will spend $100 million to build a new Chinese factory to produce batteries for vehicles equipped with start-stop systems.

The company has not yet decided where to build the plant.