Heinz China and the government of Sanshui district in Foshan have signed an investment agreement, under which the international food maker will build a new baby food manufacturing base in the city.
The new Sanshui project for Heinz will reportedly commence the first-phase construction in September 2012, and it is expected to put into production at the end of 2014.
Heinz's representative refused to reveal the investment details during an interview with local media, but said that the first batch of products will mainly be baby cereal. As for infant formulas, they will still be directly imported from Europe.
Commenting on its location in Sanshui, Heinz said that the company was attracted by the local policies. In addition, China's demands for baby food are ever increasing. Nutrition for infants and children is one of its major businesses in China. This sector has continuous and rapid development and is always a development focus of the company.
As one of the first foreign companies that entered Guangdong, Heinz continued to increase investments in the province during recent years. In 2010, the company invested USD165 million in the acquisition of Guangzhou-headquartered Foodstar (China) Investments Company Limited, improving its engagement in the Chinese-style condiment market.