VEVEY, SWITZERLAND — Nestlé S.A. is expanding its operational footprint in China with investments in two manufacturing facilities: one pet food plant in Tianjin and one plant-based product facility. The funding will go toward the addition of new production lines for Purina’s high-value pet food products, such as its veterinary lines and wet cat food products, the company said.
On May 20, Nestlé signed a Memorandum of Understanding with the Tianjin Economic-Technological Development Area (TEDA) Administrative Commission to seal the agreement. Combined, the investments will total 100 million Swiss francs, equivalent to $103.2 million based on May 21 conversion rates.
“Nestlé has a strong commitment to China and has long been dedicated to deepening our roots in the Chinese market,” said Rashid Qureshi, chairman and chief executive officer of Nestlé’s Great China Region. “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.
“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,” he said.
The facilities will incorporate environmentally friendly features to reduce carbon emissions, which is part of Nestlé’s goal to achieve net-zero greenhouse gas emissions by 2050.
“Nestlé is a world-leading food company,” said Zheng Weiming, party secretary and director of the TEDA Administrative Commission. “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.”
The company also announced it will continue developing its Nestlé Quality Assurance Center in Tianjin, as well as upgrading production lines at its confectionary plant in Chengzhen.
“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,” Qureshi added. “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.”
Today, China is Nestlé’s second-biggest market globally and home to 31 product manufacturing sites, three research and development facilities, four innovation centers, one food safety institute, one dairy farming institute and one coffee center. Altogether, the company employs approximately 43,000 people throughout its operations in China.
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