Nestlé to set up two R&D units in China

Swiss food company Nestlé plans to set up two research and development (R&D) units in China, one in Dongguan and the other in Xiamen.

Nestlé said that the investment in the R&D units is part of its long-term commitment to advance nutrition and food science in China, and will enable the company to improve its understanding of Chinese ingredients and local cuisine.

The units are also expected to provide scientific and technological expertise to the rest of Nestlé’s business in Asia and around the world.

The unit in Dongguan will specialise in baked products and will support Nestlé’s joint venture with Hsu Fu Chi, a producer of confectionery, biscuits and traditional snacks in China.

The Xiamen unit will focus on ready-to-drink beverages and will collaborate with Yinlu, a producer of ready-to-drink peanut milk and ready-to-eat rice congee.

Nestlé’s research and sevelopment global head Johannes Baensch said the company continues to invest in its R&D capability in Asia, as it provides a greater understanding of the raw materials used to make products that are suitable for local consumers.

The company has been building its R&D capability in China for more than ten years, and currently has a talented team and a strong talent pool for the future, Baensch added.

Nestlé already has two R&D facilities in the country – in Shanghai and Beijing.

The Shanghai facility, which was set up in 2001 to support its joint venture with the culinary products producer Totole, specialises in the creation of culinary products, ice cream, and ‘out-of-home’ products for Nestlé Professional.

Nestlé’s Beijing facility, which was established in 2008, provides expertise in packaging and analytical science, and in the development of dairy, nutrition, cereal, beverage mix, and pet care products.

The new R&D units in Xiamen and Dongguan, together with Nestlé’s facilities in Shanghai and Beijing, will be part of the newly-named ‘R&D China’.