Nestlé opens two new facilities in China

Nestlé has opened two new facilities in China, as part of its efforts to strengthen its business in the country by investing in its portfolio of local and global brands.

The company has opened a CHF319m ($328.7m) Yinlu Foods factory in Anhui Province and a CHF133m ($137m) Nescafé coffee facility in Shandong Province.

The food factory was opened in partnership with Yinlu Foods, creating more than 2,000 new jobs.

In 2011, Nestlé acquired a 60% stake in Yinlu Foods, which specialises in the manufacture of processed and prepared foods and beverages including ready-to-eat canned rice porridge and peanut milk.

Yinlu Foods’ product portfolio includes ready-to-drink peanut milk and ready-to-eat rice congee, red bean congee and oat congee, which are tailored to the taste and preferences of Chinese consumers.

The company’s products complement Nestlé’s existing product range in China, which includes culinary, coffee, confectionery, bottled water, milk powder and products for the foodservice industry.

The new coffee plant in Laixi, Shandong Province, is Nestlé’s second coffee extraction facility and the most advanced factory of its kind in the country, the company said.

The products manufactured at this facility will enable the company to meet consumer demand across the country.

Nestlé chief executive officer Paul Bulcke said that the company’s partnerships with Chinese companies are an important building block of its business in the country.

"These partnerships combine local knowledge and entrepreneurship with our global research and development capabilities, and product innovation and renovation expertise," Bulcke added.

"The expansion of our manufacturing facilities in China is a clear demonstration of our continued confidence in the Chinese market, and our commitment to the country and its consumers."

Nestlé has been strengthening its presence in Asia – earlier this month, the company opened a CHF230m ($238m) manufacturing facility in Dong Nai, Vietnam, to meet the increasing demand for its Nescafé soluble coffee products in the region.

In addition, Nestlé opened a MYR150m ($45.9m) facility in Malaysia, to meet the demand for its ready-to-drink beverages.

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Image: Yinlu’s product portfolio complements Nestlé’s existing product range in China. Photo courtesy of Nestlé.