The Hangzhou factory opened last month, and will make the firm's B3 visible light machine, the Micra, for the export market.
Screen has also released its interim results for the period up until the end of September. Its Graphic Arts Equipment division had strong sales, including a good Drupa, but profitability was hit by "intense competition, which drove down product prices".
Sales of graphics products grew 8.6% to 138m (27bn), but operating income fell 21.6% to 8.3m.
The firm said that it would continue to expand market share in CTP and is "working to fortify its operating platform in the digital printing press market".