The investments, in total more than CHF100m ($103.4m), include a capacity expansion of Nestlé’s existing petfood plant in Tianjin, and the company’s first production facility in Asia for plant-based products.
There will also be new investment for the confectionery business with an upgrade of the production line of Nestlé Chengzhen Wafer. Nestlé will also further develop the Tianjin Nestlé Quality Assurance Center.
Rashid Qureshi, chairman and CEO of Nestlé Great China region, said, “Nestlé has a strong commitment to China and has long been dedicated to deepening our roots in the Chinese market. Since Nestlé opened the first factory in Tianjin in 1994, we have continued to increase our investment and regard TEDA (Tianjin Economic-Technological Development Area) as one of our important bases in China.
“We are grateful to the local government for always providing Nestlé with such an excellent business and investment environment. In the spirit of Nestlé’s ’Creating Shared Value’ principle, we expect these projects to boost sustainable economic development in local communities by driving food manufacturing expansion and product innovation.”
Nestlé said to meet the demand for more healthy, nutritious, and environmentally friendly foods, it has decided to step up its focus on the plant-based category and invest in a new production facility at TEDA. By investing more in technologies to create products using plants, Nestlé said it will help to reduce carbon emissions.
Beyond the expansion of production capacity, Nestlé will also upgrade its Quality Assurance Center in Tianjin by further enhancing laboratory testing and quality monitoring services, quality assurance and laboratory capacity-building training, technical support for food safety and compliance testing, and more.
Qureshi said, “Having successfully managed the effects of the COVID19 pandemic with the support of the Chinese authorities, Nestlé has decided to increase its investments in China which is another clear demonstration of our long-term commitment and confidence in the country. By launching a series of innovative products in Chinese markets, we hope to further enhance people’s quality of life and contribute to a healthier future.”
Nestlé has been in China for more than 30 years, and the country is now the second biggest market for the company. It has 31 production sites, three R&D and four innovation centers, a food safety institute, a dairy farming institute and one coffee center, and employs about 43,000 people in the country.