(Yicai) Dec. 16 -- Baolingbao Biology, a Chinese producer of low-calorie sweeteners, will invest up to USD85 million to build a factory in the United States to better meet international clients' demand.

Baolingbao will set up a local unit to construct the facility to add an annual capacity of 30,000 tons of sugar substitutes, the Shandong province-headquartered company announced recently without disclosing the specific location of the plant.

The company anticipates a 36-month timeline for completing the project, which remains contingent upon regulatory approvals from both China and the US.

The new factory should help Baolingbao better meet the growing demand of international customers, enhance its ability to respond to changes in the global trade environment, strengthen market competence and profitability, and reinforce the company's industry-leading position, it said.

Baolingbao is a leading enterprise in China’s functional sugars industry. Its core product is erythritol, a low-calorie sweetener used in foods, beverages, and dairy products. Overseas markets made up around 29 percent of Baolingbao's revenue last year, according to its annual report.

After initially rising by 2 percent, Baolingbao's shares [SHE: 002286] fell 0.4 percent to CNY8.15 (USD1.10) in Shenzhen today, in line with the broader 1.3 percent drop in the SZSE Component Index.

Editor: Emmi Laine