Nestlé has announced the opening of a factory that will produce NESCAFÉ in Laixi, just north of Qingdao proper. Wikipedia says “Laixi is a county-level city of Qingdao sub-provincial city, Shandong Province, China.” Laixi has since 1996 been one of the main sites for production of UHT milk by Nestlé in China.

More info from China Daily on the NESCAFÉ plant in Laixi:

Nestlé held on Wednesday the inauguration ceremony of its state-of-the-art coffee factory in Laixi, Qingdao, Shandong Province. The construction and commissioning of the new factory took 13 months. The total investment is RMB 880 million and covers an area of 226,000 square meters.

The project involves a NESCAFĖ coffee extraction and spray drying production line as well as all necessary industrial services and Infrastructure facilities. Initially the factory will produce coffee powders to be used for producing and processing mixed coffee drinks at Nestlé’s coffee factory in Dongguan and its beverage factory in Shanghai with potential for expansion and finished goods production in the future. The factory is adjacent to Nestlé’s existing Laixi liquid milk facility which has been operating successfully since 1996.

Paul Bulcke, CEO, Nestlé S.A., said “The position of the Chinese market in Nestlé’s global strategic growth will be enhanced. The newly built factory fully demonstrates Nestlé‘s continued commitment in the Chinese market and lays a solid foundation for the company’s future development.”

One Shandong Provincial leader said, “Our province has gained rapid industrial development, thanks to giant enterprises, with their brands and products, such as Nestlé. Nestlé started investment and construction of factory in Laixi in 1994. After 20 years of development, Laixi’s dairy herds now total 92,000. The income of local farmers grows by RMB 450 million per year.

Laixi City’s total production of meat, eggs and dairy products ranks No.1 in Shandong Province and is developing in a stable manner. The city is also rated as China’s cutting-edge food industry city. Today, the inauguration of the freshly invested coffee factory will lay a new foundation and create new advantages for Nestlé’s market expansion and fast development. Meanwhile, it will inject energy and vitality to Shandong, further spurring its food industry’s growth.”

Roland Decorvet, Chairman & CEO, Nestlé GCR commented: “Nestlé has been investing in a dairy-base in Laixi since 1996. Our Nestlé Qingdao factory not only produces high quality and delicious foods for consumers, but has also greatly contributed to developing an area that previously had no dairy farming tradition into a productive and efficient milk district. Nestlé’s success is inseparable from the continued support of the local government.

The new investment is another important milestone for our win-win friendly partnership between Nestlé and Laixi.” Nestlé’s development vision in China is to provide local consumers with products they need. NESCAFĖ’s new factory, same with its dairy factory, will continue to Create Shared Value for local economy and community development.

Relevant Links:
A Trip To Laixi

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