Red Avenue New Materials Group (SHA:603650) plans to establish a subsidiary and factory in Thailand for up to $70 million, according to a Shanghai Stock Exchange filing on March 8.

About $35.7 million will be spent for the building of the factory. The factory will produce 30,000 tons of rubber additives every year, the chemical product manufacturer said.

The subsidiary, which will be named Red Avenue (Thailand), will produce chemical materials, synthetic resins, fine chemical additives, and bio-based chemicals. It will have a registered capital worth 600 million Thai baht.

Red Avenue will facilitate the new subsidiary as a joint venture through its Hong Kong subsidiary in partnership with its affiliated party, Gold Dynasty.

The Hong Kong subsidiary will own 51% of the Red Avenue Thailand, while Gold Dynasty will own 49%.

Red Avenue's shares dropped less than 2% in recent trade.