(Yicai) Dec. 10 -- Yuma Sun-Shading Technology will invest USD40 million to build a new plant in Vietnam, enabling the Chinese firm to better serve international clients, mitigate potential trade risks, and adapt to changes in the global trade environment.

The wholly owned plant will produce new functional shading materials, the Shouguang-based company, which makes products such as window blinds and shading membranes for glass roofs, said late yesterday. It disclosed no further details.

The factory will help Yuma Sun-Shading to explore more international markets, the company said. It will also allow the firm to respond more flexibly to adverse impacts on business from changes in the economic environment and the global trade landscape.

Overseas revenue accounted for 67 percent of Yuma Sun-Shading’s total income last year, according to its annual earnings report, highlighting the need for the company to react quickly to changes in the international trade environment.

Given the current global trade landscape, many Chinese businesses are building production bases abroad to better serve overseas customers and reduce potential trade risks. Vietnam, with its growing manufacturing sector, has become an increasingly popular destination for those looking to expand in Southeast Asia.

Yuma Sun-Shading’s shares [SHE: 300993] closed flat at CNY10.28 (USD1.42) each in Shenzhen, after climbing by as much as 3.4 percent earlier today.

Editor: Tom Litting