Abbott has announced that it will invest $230 million (USD) to build a state-of-the-art nutrition manufacturing facility in Jiaxing, China. The facility represents Abbott's largest investment in China to date and will manufacture premium powdered milk products for Chinese infants and children.
More than 17 million infants are born each year in China and rising incomes and a growing middle class have created increased demand for high-quality nutrition products. To meet the needs of this dynamic market, Abbott anticipates launching a number of new product innovations over the next three years across the pediatric nutrition category in China.
"This facility will play a key role in providing science-based, innovative nutritional products to infants and children while helping to build a healthier future for China," said John Landgraf, executive vice president, Nutritional Products, Abbott. "Building a strong local manufacturing base will position us to better provide Chinese parents the same high quality products they rely on today, even faster."
Products made at the new Abbott manufacturing facility in China will contain the same quality ingredients and undergo the same testing standards as Abbott products made at the company's other facilities around the world. The plant, when operational in 2013, will employ approximately 300 people.
With the addition of the new facility in Jiaxing, Abbott will have opened six manufacturing and R&D facilities in its nutrition and pharmaceuticals businesses in the Asia-Pacific region during the past three years, including three in China.
China represents the largest single market growth opportunity in global nutrition. Abbott expects to increase its nutrition revenues in China to more than $1 billion (USD) by the end of 2014. China also continues to be an important part of Abbott's emerging markets strategy. In the first half of the year, more than 26 percent of Abbott's global sales were in emerging markets and nearly 42 percent of Abbott Nutrition's global sales were in emerging markets.
When completed, the plant will become Abbott's first fully integrated spray drying, blending and packaging facility in China. The company's new facility will be located in the Jiaxing Economic and Technological Development Zone, which is located mid-way between Shanghai and Hangzhou.
Abbott has been operating in China for nearly 20 years and currently has more than 3,000 employees in the country. Abbott is one of the leading companies in China in the area of social responsibility. The company has been named to the top 100 ranking by both The China Corporate Social Responsibility List and the Southern Weekly List for its outstanding corporate citizenship work and for its long-term commitment to philanthropy. Abbott led the way in several categories including environmental management and climate strategy, business practices, supplier standards and innovative philanthropy.
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