The decision was announced at a medical forum, organized by the company Tuesday.

Repeated calls to State-owned Guangzhou Pharmaceutical went unanswered Wednesday.

So far, the company owns nearly 20 traditional Chinese medicine production bases, including several in Africa, making it one of China's most prolific traditional medicine production firms.

"Domestic pharmaceutical companies building supply bases abroad doesn't happen very often, since the costs are high and the (outcome) uncertain," said Guo Fanli, an industry analyst with CIC Research Center.

Guangzhou Pharmaceutical may its work cut out for it.

"Supplies of traditional medicines this year are very tight due to the bad weather and prices have risen like crazy," Guo said.

The company's principal products include remedies for diabetes, cough and phlegm clearing, arthritis and gastric diseases. Subsidiary, Guangzhou Wanglaoji Pharmaceutical Co, is well known for its "Wanglaoji Herbal Tea," one of the most popular beverages in China. Its stock price rose for the fifth consecutive day Wednesday, up 21.74 percent in Shanghai in the period.