Nestle to boost pet foods, make plant-based products in China

22, May. 2020

(Photo courtesy of Nestle
(Photo courtesy of Nestle

TOKYO, NNA – The Chinese unit of Swiss food and drink giant Nestle S.A. will invest over 100 million Swiss francs ($103 million) in a factory near Beijing to step up pet food production and install capacity to make plant-based products, the parent company said Wednesday.

Nestle (China) Ltd., a wholly owned subsidiary of Nestle S.A., will expand its pet food factory in the Tianjin Economic-Technological Development Area. New production lines in the development zone will produce veterinary diet foods and wet cat food, Nestle said in a statement.

The factory for plant-based products will be Nestle’s first in Asia, the company said, but it did not elaborate what kinds of plant-based foods it will produce and output volume.

Nestle’s expansion comes as pet ownership grows in China and people become increasingly conscious about health.

“With the rapid pace of urbanization in China, pet ownership has been a trend and is becoming increasingly popular not only in top-tier cities but also across low-tier and rural areas,” Nestle said in the statement.

The plant will run on environmentally friendly technology to reduce carbon emissions, Nestle adds. It has set a goal of creating zero net greenhouse gas emission by 2050.

“In recent years, the food sector has undergone a quiet revolution as people are choosing more and more healthy, nutritious, and environmentally friendly foods,” the statement says.

At the same plant, Nestle’s subsidiary will upgrade a production line for Nestle Chengzhen Wafer, a brand of cookie launched in 2019.

Nestle had already regarded its 26-year-old Tianjin factory as a key production hub in China. Nestle (China) has 31 factories, three research and development centers and four product innovation centers. Other China properties train personnel to farm dairy cows and do research on food safety. The company employs 43,000 workers in China.