Givaudan has inaugurated a CHF 30 million ($30.1 million) extension to its Nantong manufacturing facility, in a move to double its flavour production capacity in China and meet consumer demand for healthier products.
As a result of the CHF 30 million expansion, the total investment into the Nantong facility is now CHF 80 million ($80.2 million) .
The opening ceremony took place today and was attended by Givaudan’s top management, as well as NETDA and Swiss consulate dignitaries.
The foundation for the Nantong facility was first laid in April 2013, and commercial production began in the same month two years later.
With the expansion, the flavour and fragrance company aims to support the capacity on liquid flavour production for beverages, dairy and sweet goods, while strengthening its existing capabilities in savoury and culinary flavour blends, snack seasonings and spray dries.
Givaudan’s CEO Gilles Andrier said: “We are delighted to open the new extended space at our Nantong facility. The total investment we have made on the Nantong site supports our strategic goal of increasing Givaudan’s footprint in high growth markets and capturing growth opportunities.
“More importantly, the larger Nantong site will now enable Givaudan to collaborate even more closely with our customers to deliver innovative and creative taste solutions to the ever-evolving Chinese market.”
The 16,000 square metre addition to the original site will enable Givaudan to meet the growing demand from customers in the food and beverage segments in China. In fact, around 95% of the total production capacity will support customers in China.
“China’s economy has blossomed quickly over the years and is now the world’s second biggest economy,” said Givaudan’s APAC commercial head of flavours Monila Kothari.
Kothari added: “As a result, we have seen a tremendous growth in the food and beverage industry coming from local players. Given this rapid transformation, we now have a manufacturing facility that can support our business development strategy in China. This expansion will enable us to be agile as we address the needs of our customers in China.”
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