Jieya Biologic Technology invests US$85 million to build new plant in the U.S.
Chinese paper products manufacturer seeks to expand its international presence and mitigate impacts of US-China trade tensions
Jieya Biologic Technology, one of China’s leading suppliers of paper products, has announced an investment of US$85 million to build a new plant in the United States. The decision aims to strengthen its operations in the international market and respond to changes in global trade policies.
The plant will be in Virginia, U.S., and will have 12 production lines for small and large packaged products, with the capacity to manufacture 15 billion wet wipes a year. According to the company, construction will take two years and was announced at the end of 2024.
Jieya pointed out that although tariffs on its exported products have always been borne by customers, the continuation or intensification of trade tensions between the U.S. and China could negatively impact the volume of exports and revenue from American customers, affecting the company’s performance.
With the new plant, the company intends to improve service to current customers, strengthen its international expansion capacity and adapt to the global trade scenario. However, the plan is still subject to approval by the regulatory authorities in China and the U.S.
Based in Tongling, China, Jieya operates under the original design or equipment manufacturing model, producing wet wipes and face masks for companies such as Woolworths, Johnson & Johnson, Procter & Gamble, 3M and Rockline. It also sells its own brand products on a smaller scale.
