The Florida-based company, which is a subsidiary of Israel's Gadot Biochemicals, said operations in Shanghai are scheduled to begin on April 1 2008.
The company said that it has implemented rigid control of Quality Assurance and Vendor Compliance Monitoring, in response to US concerns about importing ingredients from China.
"This strategic move intends to attain the highest level of confidence in the quality of ingredients we currently source in China," said Mitchell Kleinman, president of Pharmline.
"We believe this move not only ensures traceability of every incoming raw material to the pallet or drum level but also makes sure our suppliers are working in compliance with GMP, ISO and HACCP standards, thus protecting our customers' creditability through providing high-value ingredients."
The new unit, which will be headed by Fang Ping will be focused on quality assurance and vendor compliance issues, according to the company.
Pharmline also said it plans to conduct regular GMP audits of its top vendors, Environmental Audits and regular Web meetings with Vendor Quality Control departments to collaborate on analytical methodologies, HACCP and current issues of concern to the industry. "
Pharmline intends to maintain its lead as one of the best GMP-certified suppliers of nutritional ingredients and value-added services , extending our objectives for total supply-chain traceability to a global scale," said Dr Chunlin Wang, the firm's vice president of quality control.
Pharmline was acquired by Gadot last year.
The Israeli firm at the time said that Pharmline was " an important link in the supply chain" to the US nutraceutical and functional food markets.
Pharmline provides premixed blends to the dietary supplements and the food and beverages industries.
It also distributes EPAX AS Marine Omega 3 fish oil, Industrial Organica Hi-Fil Lutein and Zeaxanthin products and Burgundy Botanical Extracts' EyesBerry, IridoForce and UTIRose.