U.S. pharmaceutical giant Pfizer will set up a $350 million biotechnology plant in China's Hangzhou city. The plant will be Pfizer's first Global Biotechnology Center in Asia.

Pfizer made the announcement in a statement released on Monday. The drug maker announced that the Hangzhou facility is expected to be completed in 2018.

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"The local production of high-qualify, affordable biosimilar medicines will have the potential to significantly improve the lives of patients not only in China but across the world," the company said in a statement.

Pfizer Essential Health's Group President John Young said that the biotech facility will help support China's aim to increase the complexity and value of its manufacturing sector by 2025 and contribute to building a truly innovative and vibrant bio-pharmaceutical industry.

The company also said it will work closely with Chinese regulators in order to ensure earliest supply of drugs for consumers.

"We are encouraged by a series of important reforms introduced by Chinese government that will further stimulate the industry to meet emerging health challenges, such as the rising incidence of non-communicable diseases and an aging population; as well as attract both domestic and foreign investment in healthcare and R&D," he added.

China is second largest market for Pfizer, with about 200 Chinese consumers. The U.S. headquartered company recently acquired Shanghai-based Siri Pharma's subsidiary Treely Health Co, which is a leading player in China's nutritional product market.

In 2015, Shanghai's market supervision agency slapped a nearly $15,000 fine on Pfizer for signing agreements with drugstore chains to exclusively distribute and sell its erectile dysfunction drug, Viagra. 

TagsPfizer, china, Biotechnology Center, Asia, Hangzhou