PepsiCo to invest $2.5B in China over 3 years

PepsiCo announced its plans to invest an additional US$2.5 billion in China over the next three years.

The investment will be in addition to the US$1 billion investment the company announced in 2008, which will be completed this year.

According to PepsiCo, the investment will be allocated to a variety of projects, including new manufacturing facilities, a significant scaling up of the company’s research and development operations, expanded agricultural development and brand-building initiatives.

The company said it plans to open 10 to 12 new plants in China to manufacture soft drinks, non-carbonated beverages and snacks and will install additional production lines in existing facilities. Consistent with the company’s strategy to expand in China, PepsiCo will open plants in the provinces of Fujian, Gansu, Henan and Yunnan in the next two years. All new plants will meet LEED standards for environmental design, following the model of the company’s Chongqing beverage plant, which opened last year.

PepsiCo also plans to broaden its portfolio of Chinese-designed and developed products as it works to provide more food and beverage choices made with wholesome ingredients that contribute to healthier eating and drinking.

"This investment reflects very clearly our great confidence in China and our long-term commitment to this very important, growing market. We look forward to continuing to evolve our business in China and offer Chinese consumers a full portfolio of foods and beverages ranging from soft drinks and juices to oatmeal and savoury snacks," said Indra Nooyi, PepsiCo chairman and CEO.


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