Nissin Foods Co., the Hong Kong-listed business controlled by the Japan-headquartered noodle maker, is to set up a factory in China.
The plant is to be built in Zhuhai a city in China’s southern Guangdong province.
In a statement, Nissin Foods Co. said the factory would manufacture “packaging materials to facilitate its business growth and development in the PRC [People’s Republic of China] and Hong Kong”. The company plans to spend around CNY180m (US$26.2m) on the project.
Kiyotaka Ando, Nissin Foods Co.’s chairman, said: “Since becoming listed in 2017, we have been actively and at the same time cautiously looking for opportunities to invest in appropriate facilities and partnership to enhance production efficiency and support our diversified product portfolio. The acquisition and the construction of the new plant will enable the group to better mitigate production costs and reap greater synergies from its production facilities operating in concert.
Looking ahead, we will continue to examine M&A opportunities that promise to boost our strength in enlarging market share and delivering considerable growth, and ultimately, enable us to bring sustainable returns to shareholders.”
Through a subsidiary, Nissin Foods Co. has signed a deal to buy Grandview China Holdings’ shares in UNI-INTEC (Zhuhai) Scientific Technology Co., Ltd., which owns the land use rights of an about 30,000 sq.m. site in Zhuhai.
Nissin Foods Co. said it is aiming to complete the construction of the plant by 2021.
Japan-based and Tokyo-listed Nissin Foods Holdings is the controlling shareholder in Nissin Foods Co.