Chinese CDMO Jiuzhou Pharmaceutical plans to buy a Sandoz finished drugs plant in Zhongshan in southern China for $15.1 million. Sandoz China will peel off the plant, along with its manufacturing assets and staffers, into a new firm that will become a subsidiary of Jiuzhou once the deal is complete. The Chinese firm also plans to refurbish and expand the facility, altogether redirecting $18.5 million of capital to the Sandoz project.

The deal will further consolidate the company’s position as an important link in Novartis’ global supply chain. Per the agreement, Jiuzhou will continue to supply products for Sandoz from the Zhongshan site for at least 20 months after the deal closes.