(Yicai) Nov. 29 -- Shares of Sirio Pharma rose after the Chinese producer of nutritional health food said it plans to invest no more than USD40 million to build a factory in Thailand to refine its global supply chain and better avoid market risks.

Sirio Pharma [SHE: 300791] jumped 4.5 percent to CNY28.15 (USD3.89) apiece as of lunch break in Shenzhen today, after earlier surging by as much as 5.4 percent.

Sirio Pharma plans to buy land and construct the plant in Chonburi province, the Shantou-based firm announced late yesterday. It will set up production lines for fudge candy and packaging lines for soft and hard capsules and tablets, it added.

The project is pending review and approval from relevant Chinese and Thai regulators, Sirio Pharma noted, without disclosing further details, such as the factory's annual capacity.

The new plant will become a key part of Sirio Pharma's global supply chain system after it goes live, helping to lower impacts from the increasingly complicated international trade landscape and geopolitical risks to the firm's business development while boosting its products' overseas competitiveness, the company pointed out.

Sirio Pharma is a leading integrated contract manufacturer for the dietary supplement industry, providing clients with one-stop solutions, according to its website. Its products include functional foods, special dietary foods, and health supplements.

Sirio Pharma is the first listed Chinese firm to focus mainly on making nutritious and healthy food for corporate clients, its website showed. It has research, development, and production bases in China, Germany, and the US.

In January last year, Sirio Pharma bought a majority stake in California-based Best Formulations, a leading contract manufacturer of nutritional supplements and personal care products.

Editor: Martin Kadiev