SHANGHAI - American biotech company Moderna on Monday commenced construction on its first pharmaceutical plant in China, with an estimated investment of 3.6 billion yuan ($501 million).

The Moderna China R&D and production headquarters project, located in Shanghai's Minhang District, covers about 18 hectares in the Shanghai Xinzhuang Industry Park, according to the park's authorities.

This move follows a tripartite strategic cooperation agreement signed on July 5 between the Shanghai Municipal Commission of Economy and Informatization, the Minhang district government, and Moderna. The collaboration aims to bolster investment, research, development, and commercialization in biopharmaceuticals.

As one of the world's leading mRNA vaccine developers, Moderna focuses on cancer immunotherapy, including mRNA-based medicine R&D and virus prevention technologies.