Nestle’s Chengdu Base to Open in June

by swisscham in Hospitality, Retail, Tourism

NestleÕs food-production base in Chengdu is projected to start operations in June, after nearly two yearsÕ construction and a total investment of RMB 1.68 billion (USD 270 million). The base, covering an area of 35.5 hectares is located in Xinjin district in the Chengdu city, capital of Sichuan province. Advanced equipment imported from Italy, Switzerland, France and Sweden at a value of RMB 600 million arrived for installation and trial operation at the base whose main construction is near completion. ÒThe annual output of the base is expected to reach 900,000 tons under its full capacity to generate target annual revenue of RMB 5 billion,Ó said Wang Yunlong, director in charge of the project. ÒProducts from the base will reach the markets in Southwest ChinaÕs provinces of Sichuan, Guizhou, Yunnan and Chongqing municipality,Ó he added. Nestle, the largest food company in the world by revenues, bought a controlling stake in the China-based food company Yinlu in 2011. The project in Chengdu is the first food-production base since their partnership, mainly producing all ready-to-drink Nescafe instant coffee as well as YinluÕs ready-to-drink peanut milk and canned rice porridge.

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