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Unilever factory targets inland cities
June 6, 2013, Thursday
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ANGLO-DUTCH consumer products giant Unilever is expected to complete construction of the first phase of its new plant in the city of Meishan near Chengdu at the end of this year, another step in its strategy of deepening expansion into inland cities in China.
The 300 million yuan (US$48.4 million) laundry detergent plant, covering 266,667 square meters, will have production capacity of 200,000 tons and industrial output value of 2 billion yuan.
"China is one of Unilever's most important global markets, and we're very confident about our future development here," said Alan Jope, president for Unilever North Asia.
The Meishan facility in Sichuan Province will complement the company's expansion strategy, coupled with new manufacturing centers in eastern Anhui Province and in the northern city of Tianjin.
Energy-saving technologies will also be used in the new Meishan plant and carbon dioxide emission and waste water from the production lines will be cut half from that in 2008 at Unilever's existing production facilities, based on Unilever Sustainability Living Plan.
Sichuan Province, with its large population and established chemicals industry, will give the Meishan plant closer access to raw materials and to end-users, according to Unilever.
In the future, more Unilever products will be made at the Meishan plant, making it one of the company's biggest manufacturing sites in the world.
Apart from serving the local market, some of the products will be exported.
Western China has huge market potential and a convenient transport network connecting to other inland areas.
Unilever has a deep connection with Meishan.
After the Wenchuan earthquake in 2008, Unilever and its employees donated a total of around 12 million yuan to Sichuan and that went to 13 elementary schools and middle schools and more than 6,000 local students.
Elsewhere in China, Unilever is also expanding its manufacturing to the Hefei Economic Development Zone in Anhui Province.
Last year, production began at a new 180 million yuan toothpaste factory in Hefei.
The consumer products market in China is growing at between 8 percent and 10 percent a year, and Unilever revenue growth is well ahead of those growth figures.
The company is aiming to increase annual sales in China to 50 billion yuan by 2020.
Apart from existing brands, Unilever intends to introduce new products and even new product categories to boost sales.
The consumer goods company has gradually been moving its production sites from Shanghai and Guangzhou along the eastern coast to central and western China, where production and logistics cost are relatively cheaper and consumer markets are more untapped.
Shanghai remained the company's operations center in China, especially for research and development.
The 300 million yuan (US$48.4 million) laundry detergent plant, covering 266,667 square meters, will have production capacity of 200,000 tons and industrial output value of 2 billion yuan.
"China is one of Unilever's most important global markets, and we're very confident about our future development here," said Alan Jope, president for Unilever North Asia.
The Meishan facility in Sichuan Province will complement the company's expansion strategy, coupled with new manufacturing centers in eastern Anhui Province and in the northern city of Tianjin.
Energy-saving technologies will also be used in the new Meishan plant and carbon dioxide emission and waste water from the production lines will be cut half from that in 2008 at Unilever's existing production facilities, based on Unilever Sustainability Living Plan.
Sichuan Province, with its large population and established chemicals industry, will give the Meishan plant closer access to raw materials and to end-users, according to Unilever.
In the future, more Unilever products will be made at the Meishan plant, making it one of the company's biggest manufacturing sites in the world.
Apart from serving the local market, some of the products will be exported.
Western China has huge market potential and a convenient transport network connecting to other inland areas.
Unilever has a deep connection with Meishan.
After the Wenchuan earthquake in 2008, Unilever and its employees donated a total of around 12 million yuan to Sichuan and that went to 13 elementary schools and middle schools and more than 6,000 local students.
Elsewhere in China, Unilever is also expanding its manufacturing to the Hefei Economic Development Zone in Anhui Province.
Last year, production began at a new 180 million yuan toothpaste factory in Hefei.
The consumer products market in China is growing at between 8 percent and 10 percent a year, and Unilever revenue growth is well ahead of those growth figures.
The company is aiming to increase annual sales in China to 50 billion yuan by 2020.
Apart from existing brands, Unilever intends to introduce new products and even new product categories to boost sales.
The consumer goods company has gradually been moving its production sites from Shanghai and Guangzhou along the eastern coast to central and western China, where production and logistics cost are relatively cheaper and consumer markets are more untapped.
Shanghai remained the company's operations center in China, especially for research and development.
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