Nissin Foods to build packaging material plant in Zhuhai, China
HONG KONG, NNA - Japan's leading instant noodle maker Nissin Foods Holdings Co. will build a packaging material plant in Zhuhai, southern China, to cut costs.
Nissin Foods Co., its local subsidiary, plans to invest 180 million yuan ($26 million) for the plant. It acquired the right to use a site in the city by taking over a local firm for an undisclosed sum, spokeswoman Blanche Wong told NNA on Friday.
She said the plant is scheduled for operation in 2021 but declined to comment on its production capacity. It will produce packages and cups for instant noodles.
By building its own plant, the Hong Kong unit, which oversees the greater China region and was listed on the local bourse in 2017, aims to ensure quality and necessary volume of packaging materials. The Japanese food group has an instant noodle-manufacturing unit in Zhuhai, Guangdong Province.
The packaging materials will be used for instant noodles sold in Hong Kong and China. The group has operated a packaging material factory in Dongguan, also in Guangdong, since 2013, the spokeswoman said.
In order to secure land for the plant, Nissin Foods (China) Holdings Co., a wholly owned unit of the Hong Kong regional headquarters, purchased all of the equity in Uni-Intec (Zhuhai) Scientific Technology Co. from its controlling shareholder Grandview China Holding Ltd.
Uni-Intec had the right to use a tract of about 30,000 square meters in Zhuhai, according to Nissin Foods' statement on Tuesday. (NNA/Kyodo)