A Chinese artificial flower manufacturer is expanding into Europe with a new distribution hub in Spain, as demand grows for realistic decorative products.

Yang Qiang, a Tianjin-based entrepreneur, will travel to Spain next week to oversee operations for at least a year. His company has invested more than five million yuan ($725,135) in a 2,600-square-meter warehouse near Madrid, which is set to begin operations.

The facility will distribute silk flower products made in Caozili town, in Tianjin's Wuqing district, to markets across Europe.

The expansion follows interest from buyers at the Intergift Autumn trade fair in Madrid last year, where Yang's company was the only Chinese exhibitor.

"Over two days, more than 270 buyers came to inquire and discuss cooperation," Yang recalled, a figure far exceeding expectations.

"During the fair, we also noticed that over 95 percent of artificial flowers in the international market originate from China. The prospects for cooperation are enormous," he said.

By establishing a local warehouse, the company aims to shorten delivery times and improve supply stability.

Spain's location makes it a strategic logistics base, enabling access to wider European Union markets.

European consumers tend to favor highly realistic, nature-inspired designs, with demand driven by weddings, home decoration, and memorial use. Yang said there is particular interest in Chinese flower varieties that are less common in Europe.

Caozili, known as a "silk flower town", accounts for more than one-third of China's artificial flower production. The town has over 1,000 related businesses, with annual output nearing two billion yuan, about 80 percent of which is exported, according to local authorities.

Chen Yijun and Ca Muzi contributed to this story.