Nestlé China to invest CHF 100 million in factories, including pet food and plant-based
Nestlé announced a series of investments that will further strengthen its footprint in China and continue to enhance its product portfolio with innovative and premium products.
The investments, in the Tianjin Economic-Technological Development Area (TEDA), total more than 100 million Swiss Francs (RMB 730 million).
With pet ownership on the rise in China, this includes a significant capacity expansion of Nestlé’s existing pet food plant in Tianjin. New production lines will offer pet owners quality products in categories including Veterinary Diet and Wet Cat Food.
The investment will also see Nestlé’s first production facility in Asia for plant-based products. In recent years, the food sector has undergone a quiet revolution as people are choosing more and more healthy, nutritious, and environmentally friendly foods.
Together these investments underline Nestlé’s determination to contribute to the transformation and upgrading of China’s food industry. A signing ceremony for a Memorandum of Understanding between the Tianjin Economic-Technological Development Area (TEDA) Administrative Commission and Nestlé China was held in Tianjin. Guests from both the government and companies witnessed the signing of the partnership agreements.
Mr. 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 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.”
With the rapid pace of urbanization in China, pet ownership has been a trend and is becoming increasingly popular not only in top tier cities but also across low-tier and rural areas. Viewing this trend as a significant opportunity, Nestlé plans to further invest in and increase the production capacity of Nestlé Purina PetCare factory in TEDA. It will introduce production lines for brand new high value-added products, such as the Veterinary Diet and Wet Cat Food categories, to provide pets with richer and premium food options.