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Area Development - Site Selection, Facility Planning and Workforce Development

Pepsi Invests $2.5B in China

05/21/2010
PepsiCo announced today that it will invest $2.5 billion in China over the next three years to build new plants and research centers, the Associated Press reports. That's along with $1 billion the company announced it would invest in the country in 2008.

"We are building expertise and infrastructure now so that we can have a strong, sustainable manufacturing and agricultural base to serve the diverse and growing needs of consumers across China," said Pepsi CEO Indra Nooyi.

Pepsi will use the funds to build 10 to 12 manufacturing facilities, a research and development center, and create five new farms to grow potatoes and oats for its products. Soft drinks, juices and other drinks, and snacks will be produced at the facilities. Pepsi will also add production lines at existing facilities. The new plants are slated for Fujian, Gansu, Henan, and Yunnan provinces.

Pepsi has reported robust business in its overseas sectors. In the first quarter, it showed double-digit gains in sales of its products in India and China. But it's not alone: Coca Cola is also investing in these markets.

Pepsi currently operates 27 plants and five farms in China, and employs more than 20,000 people there.

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