Nestlé has increased the amount of capital spending being put towards expanding its pet-food production in China.
Last year, the Swiss giant set out plans to invest CNY600m (US$91.4m) in expanding capacity at its pet-food manufacturing site in Tianjin in the north of the country.
Nestlé has now officially launched two projects – a new line for dry pet food at its existing plant and a new factory for wet products, both on the same site – but upped its budget by another CNY230m.
A spokesperson for Nestlé’s business in China said the increase in investment would be put towards areas such as warehousing and to equipment to help reduce carbon emissions at the site. Part of the new tranche of spending will also go towards buying land for the wet pet-food factory and a “refinement in project-related cost and design”, the spokesperson added.
Nestlé is aiming for the new production line for dry pet food to begin output by the end of this year, while the new plant to make wet products is scheduled to start operations in the first quarter of 2023.
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In a statement, the company said the investment would "strengthen Nestlé's leading position in China's domestic pet food industry".
Mirand Chan, the head of Nestlé's Purina PetCare business in Greater China, added: "Having been active in the Chinese market since 2001, our pet-food business receives major support from Nestlé, with a recent focus on facilitating the continued upgrading of consumption in the sector. The market has shown increasingly strong demand for high-quality pet food in terms of raw materials, nutrition and taste. Our new investments will help to deliver the best products to our consumers."