Fabric firm Komatsu Seiren Co on Wednesday revealed plans to set up a dye processing subsidiary in Suzhou, eastern China.

The company said it will invest $26 million in a huge plant for Komatsu Seiren Suzhou Co Ltd with the unit processing dyes for polyester-made fabrics and knitwear. It will start operations in May 2004.

Komatsu Seiren said it sees soaring demand for value-added products in China following good feedback from recent trade shows in Shanghai and the forthcoming Olympic games in Beijing in 2008.