FOOD manufacturer Nestle plans to establish a new plant in China every year to satisfy the fast expanding local market, says a senior executive.
Nestle runs two plants in China, one in northeastern Heilongjiang province, producing infant formulas, and the other in Guangdong and specialising in instant coffee and whitener.
Marc Dreyer, general manager of Nestle Dongguan, said China had been identified as a key market by the Swiss food maker.
The Dongguan plant, a joint venture with a total investment of 120 million yuan (about HK$160.8 million at the official rate) started operating in 1991, and is now running at capacity.
Nestle holds a 60 per cent stake in the joint venture, while the remainder is held by its Chinese partner, Dongguan Sugar and Liquor Co.
The annual production capacity is 2,000 tonnes of coffee and 2,000 tonnes of whitener. Company officials said the majority of the products were sold in the domestic market.
Nestle Dongguan plans to expand production capacity to produce 7,000 tonnes of instant coffee and 7,000 tons of whitener a year.