(JW Insights) Oct 23 -- Chinese smart electronics product manufacturer Solex High-Tech Industries (松霖科技) will spend up to $50 million to build its first overseas plant in Vietnam, reported Yicai Global on October 20.

The new factory will help Solex High-Tech expand its production capacity, gain orders from overseas clients, and strengthen its competitiveness overseas, the Xiamen-based firm announced on October 19.

In the long run, the move is in line with Solex High-Tech's overall strategic planning and will help the firm stabilize its integrated manufacturing of health-related hardware and conform to the frequent changes in the sector, the company added.

Solex High-Tech also looked into other countries, including Thailand and Myanmar, as locations for the plant, but then it chose Vietnam because of its great tax breaks and Thailand's high land price, financial media Cailianshe reported, citing an insider at Solex High-Tech.

Founded in 2004, Solex High-Tech is mainly engaged in the integrated manufacturing of health-related hardware, some of which are kitchen and bathroom products, such as toilets and faucets, beauty products, including water flossers and skin-testing equipment, as well as intelligent products for bodybuilding and sleep monitoring.

Solex High-Tech reported a net profit of RMB120 million ($16.4 million) in the first half of the year, down 23 percent from a year earlier. Revenue rose 19 percent to RMB1.4 billion ($190.8 million). Exports contributed 66 percent of the company's overall sales revenue, with the United States, Europe, India, Brazil, and Russia among its main export destinations, according to the Yicai Global report.

(Li PP)