Nestle has said it is investing CNY100m (US$16.1m) to "strengthen" its ice cream business in China, where it is increasing capacity at its two factories in Tianjin and Guangzhou.
The company said it has opened a new production line in Tianjin to manufacture the Nestle 8Cubes brand. The group has also increased cold storage capacity in Guangzhou.
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Nestle 8Cubes are a shareable bite-size ice cream made up of eight cubes with a chocolate and sesame seed coating.
"This investment will enhance our ability to meet increasing consumer demand for our products," said Ouyang Kai, vice president of Nestle Greater China’s ice cream unit. "It also underlines our confidence in the long-term dynamics of the Chinese market."
Nestle has been hit by weaker sales in China, its second largest market by sales. In April, the company reported a 0.2% drop Asia sales for the first-quarter of this year.
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