Chanson International Holding (NASDAQ: CHSN) commenced construction on a digitalized bakery production facility in Urumqi, China, the company announced. The project received support from the Shuimogou District Government following completion of land-use planning adjustments.

The facility will feature Swiss Rondo dough sheeting production lines, intelligent ovens, and automated cupcake production lines equipped with Internet of Things sensors. AI algorithms are designed to optimize baking parameters to reduce production time and improve efficiency, according to the company's internal testing.

The manufacturing design includes modular flexibility enabling product switching in under 40 minutes and small-batch production capabilities. Quality control systems will incorporate visual inspection technologies and real-time microbiological monitoring.

Chanson plans to integrate blockchain-based traceability systems for raw materials tracking from source to finished goods. The company is establishing a cold-chain logistics network with local partners including Xinjiang C.P. Egg Industry Co. LTD. for nationwide distribution in China.

The production base will include rooftop solar panels expected to generate approximately 2.4 million kWh annually and ground-source heat pump systems for energy efficiency.

"This milestone in our production capacity upgrade represents an important step in Chanson's long-term strategic development," said Gang Li, Chairman and CEO. "By integrating AI-driven intelligent manufacturing with advanced supply chain systems, we aim to enhance operational efficiency, product quality, and scalability."

The completed facility is intended to expand capacity and support growth of Chanson's franchise and directly operated stores. The company currently operates 63 stores in China and three stores in New York City, providing bakery, seasonal, and beverage products through its chain stores.