Nestle plans to close a factory in Shanghai as it looks to refocus its ice cream business in China.
The world’s largest food maker said it would shut the plant at the end of the month, which will lead it to “suspend” its ice cream sales to retail outlets in the city.
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A spokesperson for Nestle’s Chinese operations said the company would continue to supply ice cream to hotels, restaurants and cafes in Shanghai with the Movenpick brand that is imported into the country.
“Ice cream is very important to us in China,” the spokesperson said. “This is part of our on-going effort to build a long-term sustainable ice cream business in this market. While suspending the retail sales and closing the Shanghai factory, we will reinforce the success of the business in the south and the north.”
The spokesperson said Nestle would make “significant investments” in its other ice cream operations in China. The company has factories in the southern city of Guangzhou and in Tianjin in the north of China.
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