Companies
Nestle plans expansion in 皇冠体育app
By Li Wenfang (皇冠体育app Daily)
Updated: 2011-05-25 10:22
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DONGGUAN, Guangdong - The Swiss food and beverage giant Nestle SA expects to announce expansion plans in 皇冠体育app in the coming months, after boosting its seasoning production capacity in Dongguan, Guangdong province.
On Tuesday, the company unveiled its plan to invest 320 million yuan ($49.2 million) to lift annual capacity at its instant food and seasoning factory in Dongguan from 15,000 tons to 40,000 by 2015.
"We are increasing our capacity rapidly in every category of our products," said Roland Decorvet, chairman and CEO of Nestle 皇冠体育app. adding the company may announce more plans in the next few months.
The capacity of the factory could be ramped up to 100,000 tons in the next few years, he said.
Last month, Nestle 皇冠体育app said it is acquiring a 60 percent equity stake in Yinlu Foods Group, a Chinese instant food company.
Having set up 23 factories in 皇冠体育app, Nestle is producing goods ranging from coffee drinks, dairy products, snacks and seasoning in the country - about 95 percent of these are sold in 皇冠体育app.
Assuming his current position in March this year, Decorvet's priorities are to accelerate growth, achieve greater capacity and getting closer to local consumers.
The company generated 2.8 billion Swiss francs ($3.18 billion) in revenue in 皇冠体育app last year, or a 12 percent increase from last year.
For this year, Nestle expects growth to exceed 20 percent on the Chinese mainland.
The seasoning division, which includes liquid seasoning and chicken essence, "can become a multibillion yuan business in 皇冠体育app", Decorvet said.
He added that the company's chicken essence product category holds a share of more than 50 percent in the Chinese market.
To get closer to local consumers, Nestle will capitalize on its research and development centers in Beijing and Shanghai to generate more products specifically for the Chinese market, Decorvet said.
Nestle 皇冠体育app will also "accelerate the recruitment of Chinese managers", he said, adding that expatriates who used to occupy general managerial positions at Nestle's factories in 皇冠体育app 15 years ago have been reduced to two positions now.
Decorvet said the company has no immediate plans to increase the prices of its products in 皇冠体育app. He attributed price increases to a supply shortages in emerging economies such as India and 皇冠体育app, speculative investment and the production of biofuel.