Swiss food processing giant Nestlé has announced a series of investments totalling CHF100m ($103m) to strengthen its footprint in China.
The investment will expand Nestlé’s existing pet food plant in Tianjin and will introduce new production lines for high-value products under the portfolio.
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The company said that it will also build its first production facility in Asia for plant-based products.
Furthermore, Nestlé plans to upgrade the production line by investing in its confectionery business Nestlé Chengzhen Wafer. The company also plans to further develop the Tianjin Nestlé Quality Assurance Center, with the new investment.
The company had signed a memorandum of understanding (MoU) with the Tianjin Economic-Technological Development Area (TEDA) Administrative Commission.
Nestlé Great China Region chairman and CEO Rashid Qureshi 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 as one of our important bases in China.
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By GlobalData“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.”
The company plans to introduce new production lines for new, high-value products such as Veterinary Diet and Wet Cat Food categories, to provide pets with richer and premium food options.
To meet the demand, the company intends to focus on plant-based category and invest in a new production facility, also at TEDA.
Last year, the company announced its goal to achieve zero net emissions by 2050.
TEDA Administrative Commission Director and Party Secretary Zheng Weiming said: “Nestlé is a world-leading food company.
“Over the past 25 years, Nestlé has been continuously making investments in Tianjin city, effectively boosting local economic growth and driving overall development of the local food industry.
“Since the COVID-19 epidemic in China, Nestlé has actively responded to the government’s call to promote economic development and continued to increase its investment and expand production in Tianjin.”
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Rashid Qureshi (left) and Zheng Weiming (right) at the MoU signing ceremony. (Credit: Nestlé.)
