(Yicai) Dec. 30 -- Leading Chinese paper products supplier Jieya Biologic Technology plans to invest USD85 million to build a factory in the United States to better respond to changes in global trade policies.

Jieya will build a new plant with 12 production lines for small and large packaged products with an annual production capacity of 15 billion wet wipes in Virginia, the Tongling-based company announced on Dec. 27. Construction is expected to last two years.

Jieya’s 2023 financial statement warned that even though tariffs on its exported products have always been borne by customers, if the US-China trade tensions persist or escalate, the company’s export volume and revenue from US clients could decline, impacting its overall operating performance.

Building a plant in the US will help Jieya better serve its existing customers, enhance its core business development capabilities overseas, and be able to actively respond to challenges in the international trade landscape, the firm noted.

The plan is subject to review and approval of regulatory authorities in both China and the US, Jieya added.

Jieya mainly operates under the original design or equipment manufacturing model, making wet wipes and facial mask products for famous companies worldwide, such as Woolworths, Johnson & Johnson, Procter & Gamble, 3M, and Rockline. It also produces and sells its own branded products in small amounts.

Jieya’s shares [SHE: 301108] closed down 1.4 percent at CNY25.91 (USD3.55) in Shenzhen today.

Editor: Futura Costaglione