Nestle Opens Two New Food Manufacturing Plants In China

Switzerland-headquartered food and beverage company Nestle announced that the company has opened two new food manufacturing plants in China's Shandong and Anhui, respectively, representing its confidence in the Chinese market.

According to a report published by the company, the new plant in Chuzhou, Anhui, is a joint venture of Nestle and Yinlu and this plant has put into production. With total investments of CHF319 million, which is about USD336 million, the new plant will focus on the production of boxed eight-treasure porridge and peanut milk. It claims an annual processing capacity of 900,000 tons of peanuts, rice, wheat kernels, red beans, and mung beans and it will provide 2,000 jobs.

In 2011, Nestle acquired a 60% stake in Yinlu Group and the two parties established a joint venture.

Meanwhile, Nestle's new coffee plant in Laixi, Shandong, was recently put into production. With total investments of CHF133 million, which is about USD140 million, this plant aims to produce coffee products that meet Chinese consumers' tastes.

Paul Bulcke, chief executive officer of Nestle, told local media that the launch of the new plants represent Nestle's confidence in the Chinese market. The cooperation with Chinese partners is an important cornerstone for Nestle's business expansion in China. The cooperating relationships will combine the local operating experience of its Chinese partners with Nestle's global research and development capacity as well as its innovation ability.

In 1990, Nestle's first Chinese plant started operation in Shuangcheng, Heilongjiang province. So far, the company has launched 33 modern plants in the country and 90% of its products realized localized production.