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April 25, 2012

CHINA: Heinz to build Sanshui baby food facility

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.

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.

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