Nestlé opens ice cream plant in south China

Swiss food giant Nestle has opened a new 22,000 square metre factory in Guangzhou, capital of Guangdong Province, demonstrating its aim to further develop the Chinese market.

The plant will increase the company’s annual ice cream productivity to 64 million litres, three times the output from its old facilities. It will help Nestle promote its high-end ice cream brand in south China and meet the growing consumer desire for ice cream products, according to Peter Brabeck-Letmathe, chairman and CEO, Nestle Group.

Nestle has opened 20 factories in 17 regions across China since it entered the market two decades ago and says that it expects underlying sales to rise in 2008 at a similar rate to 7.4% last year, a big jump from its long-term growth target of between 5 and 6%.