According to a report in Yicai Global, a Chinese news outlet, a leading Chinese paper products supplier Jieya Biologic Technology, will invest $85 million to build a factory in the U.S. 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 in late 2024. 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 U.S.-China trade tensions persist or escalate, the company’s export volume and revenue from U.S. clients could decline, impacting its overall operating performance.
Building a plant in the U.S. 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 companies worldwide, such as Woolworths, Johnson & Johnson, Procter & Gamble, 3M, and Rockline. It also produces and sells its own branded products in small amounts.
