Su Bo, CEO of Nestlé Greater China’s Food & Beverage division, recently announced that Nestlé had invested RMB 600 million (USD 95.3 million) in building new coffee factories in Laixi, Shandong Province. The plants are expected to commence operations in 2013. Nestlé aims to exceed a growth rate of 20 percent in its China coffee business and the increased investment is a firm signal of its intent to grow the China market.
Currently, Nestlé Coffee has two factories: one in Dongguan and one in Shanghai. It also has a dairy factory in Shandong Province. The RMB 600 million (USD 95.3 million) investment into coffee factories will accelerate the development of nearby packaging companies and drive the regional packaging industry.