Nestlé's World-Class Coffee Factory Established in Laixi

Nestlé Opens World-Class Coffee Factory in Laixi, Shandong

Yesterday, reporters learned from Nestlé Group that Nestlé recently held a completion ceremony for its world-class coffee factory in Laixi, Qingdao City, Shandong Province. The construction and commissioning of the new factory took 13 months, with an investment of 880 million RMB. The factory covers an area of 226,000 square meters. The project includes Nestlé coffee extraction and spray drying production lines, as well as all necessary industrial service facilities. The factory initially produces coffee powder for Nestlé's Dongguan coffee factory and Shanghai beverage production, as well as for processing coffee mixed beverages, while also having the potential for future expansion and finished product production. The new factory is adjacent to the Nestlé Laixi liquid dairy products factory built in 1996.

Nestlé CEO's Perspective

Paul Bulcke, CEO of Nestlé Group, said: "The Chinese market holds an increasingly important position in Nestlé's global strategic development. The establishment of the new factory in Laixi fully demonstrates Nestlé's continued commitment to the Chinese market, while also laying a solid foundation for the company's future development."

Shandong Provincial Leadership's Response

Shandong provincial leaders stated: "The rapid development of our province's food industry is mainly driven by leading enterprises and famous brands like Nestlé. Since Nestlé invested and built factories in Laixi in 1994, after nearly 20 years of development, it has helped increase Laixi City's dairy cow population to 92,000 head, increasing farmers' milk income by 450 million RMB annually. Laixi City's total production of meat, eggs, and milk ranks first among counties in Shandong Province, and it has been recognized as a strong city in China's food industry. Today, the successful completion of the first phase of the newly invested coffee factory will surely lay a new foundation and create new advantages for Nestlé's market expansion and accelerated development. At the same time, it will also inject new vitality and add new energy into the development of Shandong's food industry."

Nestlé Greater China Chairman's Statement

Mr. Roland Decorvet, Chairman and CEO of Nestlé Greater China, also stated: "Nestlé established Qingdao Nestlé Co., Ltd. in Laixi City in 1996, primarily focused on dairy production. It not only produces high-quality, delicious food for consumers but has also transformed areas without traditional dairy farming traditions into productive, efficiently operating dairy regions. Nestlé's achievements are inseparable from the continuous support of local governments, and this new investment is another important milestone in the win-win partnership between Nestlé and Laixi. Nestlé's development vision in China is to provide products that meet the needs of domestic consumers. The new Nestlé Coffee factory, like the dairy factory, will continue to create shared value for local economic and community development."

Nestlé Coffee's History in China

It is understood that Nestlé coffee products entered the Chinese market in the late 1980s. With its rapid spread, Nestlé decided to begin local production. In 1988, Nestlé established Dongguan Nestlé Co., Ltd. in Guangdong Province, producing products such as Nescafé and Coffee-Mate. Later, in 2008, coffee production lines were added at Nestlé's Shanghai solid beverage factory. "Nescafé" has been consecutively selected as "Most Loved Brand" by Chinese university students for the past 6 years. At the same time, Nestlé's coffee development project in Yunnan has gained recognition from all sectors of society, having won the United Nations "2012 World Business and Development Award" and was also recognized as the "2012 UN Global Compact China Best Practice" in the same year.

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