KUNMING, May 22 (Xinhua) -- China's Yunnan Baiyao group announced that it is building a 1.16-billion-yuan factory to produce toothpaste to meet the demands of consumers who are becoming increasingly health-conscious.

Established in 1902, Yunnan Baiyao is a time-honored brand based in southwest China's Yunnan Province. It became famous for producing baiyao, or white powders that are used to stop bleeding and relieve pains.

The company has crafted new products including toothpaste and other personal-care items injected with the medicinal elements.

General manager Yin Pinyao said the firm became the No. 1 toothpaste seller in the domestic market in December last year.

Though a tube of the Yunnan Baiyao toothpaste is sold for over twice the price of Colgate, buyers of the products believe the medicinal traces help treat tooth and gum problems and are willing to pay up.

Yin said the new facility will be used to produce customized toothpaste products, with digitized manufacturing and modern logistics.

It is expected to be put into operation by the end of this year, with an expected output value of 10 billion yuan (1.47 billion U.S. dollars).