CHINA: Heinz to build Sanshui baby food facility

By Michelle Russell | 25 April 2012

Heinzs project is scheduled to begin before the end of the year

Heinz's project is scheduled to begin before the end of the year

Heinz has signed an investment agreement with the government of the Sanshui district in the Chinese city of Foshan for the construction of a baby food manufacturing base.

Construction of the project is scheduled to begin before the end of the year, a spokesperson told just-food today (25 April).

"The new 80,000 square metre facility will expand Heinz's fast-growing infant nutrition business in China, a key emerging market for the company," the spokesperson said. "Heinz is taking this step to optimise our dynamic growth in China, a market with accelerating demand for high-quality infant nutrition products."

The factory is expected to commence production in 2014.

In 2010, the company invested US$165m in the acquisition of Guangzhou-headquartered Foodstar (China) Investments Co, boosting its presence in the Chinese-style condiment market.

Last week, Nestle agreed a deal to acquire the infant nutrition business of US pharmaceuticals group Pfizer for US$11.85bn, a deal that could bolster Nestle's presence in China.

Sectors: Baby food, Emerging markets

Companies: Heinz, Nestle, Pfizer

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