Unilever has unveiled plan to expand its China food production base in Taicang, Jiangsu Province, with a total investment of US$113 million, making it Unilever’s largest investment ever in the food segment in recent years.
The new expanded production base with a total area of 63,000 sq.metres is scheduled to commence operation in early 2022. The facility will initially be utilised to produce its signature Wall’s ice cream and will have an annual capacity of 150,000 metric tonnes. Production lines for tea bags, sauces, seasonings and other food products will be introduced at a later stage.
The upgraded manufacturing base is expected to fully support Unilever’s production in China for 5 to 10 years.
The Taicang factory was established in the 1990s, however according to Rohit Jawa, Executive Vice-President of Unilever North Asia, the factory cannot keep up with the rapidly growing demand from the Chinese market by simply adding more state-of-art machines. As such, the company decided to invest in upgrading its factory into the world’s first smart ice cream factory that combines automation, intelligent and agile manufacturing.
Such unmanned factory has proven to be particularly advantageous during the COVID-19 pandemic as it can ensure food safety while continue manufacturing at the same time. The factory upgrade is also in accordance with China’s industrial upgrading strategy, he added.
In China, Wall’s signature premium brand Magnum has maintained strong growth strong with E-retailing been the major driver.
Jawa added, “China is among the top 5 contributors to Unilever’s annual sales revenue, and a large part of the group’s growth will come from China in the next 10 years.”
Unilever to upgrade existing production plant to smart factory in Jiangsu
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