Tianshui Zhongxing Bio-technology (SHE:002772) plans to establish a 50 million yuan subsidiary that will set up an industrial park, according to a Shenzhen Stock Exchange disclosure on Tuesday.

The edible and medicinal fungi-making subsidiary, Jiangsu Zhongxing Fungus Technology, will be managing the construction of the Lianshui edible fungi industrial park, which is expected to cost 550 million yuan.

The industrial park will be constructed in two phases, with the first to amount to 170 million yuan and produce 55,000 tons of edible fungi every year. The second phase will cost 380 million yuan and will produce 20,000 tons of Agaricus bisporus every year, the Chinese edible mushroom producer said.

The company's shares slipped more than 1% in recent trade.