PepsiCo's New Food Manufacturing Plant Aims to Capture Growth in China

July 12, 2012
China is expected to become the world's largest beverage market by 2015.

The new plant that PepsiCo, Inc. (IW 1000/50) opened earlier this week in Wuhan, China is the company's sixth food manufacturing site in China.

"PepsiCo has a strong and growing food and beverage business in China, and we're making investments to drive sustainable long-term growth," Nooyi said. "The Wuhan plant is a crucial piece of our growth strategy, as it opens new opportunities for PepsiCo in central and western China and will allow more Chinese consumers to enjoy Lay's and other great PepsiCo brands. It also continues our commitment to sustainable development, which we believe is a key driver of both China's and PepsiCo's future success."

The company first entered the Chinese market in 1981.

The PepsiCo plant in Wuhan, which includes 25,000 square meters of production space has the capacity to produce approximately 15,000 tons of Lay's potato chips annually. Lay's is the world's largest food brand and China's top-selling chip brand, according to the company.

The Wuhan plant is the first foods facility built by PepsiCo in China in line with the criteria established by Leadership in Energy and Environmental Design (LEED), the world's leading green building standard. The plant is expected to use 30% less water and 20% less energy compared to the 2006 baseline for PepsiCo China Foods manufacturing plants.

Three existing plants in PepsiCo's manufacturing network in China are LEED-certified: Pepsi bottling plants in Chongqing, Nanchang and Kunming.

China is expected to become the world's largest beverage market by 2015. Earlier this year, PepsiCo completed a strategic beverage alliance with Tingyi (Cayman Islands) Holding Corp. (Tingyi), one of the leading food and beverage companies in China.

About the Author

Adrienne Selko | Senior Editor

Focus: Workforce, Talent 

Follow Me on Twitter: @ASelkoIW

Bio: Adrienne Selko has written about many topics over the 17 years she has been with the publication and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is also a senior editor at Material Handling & Logistics and EHS Today

Editorial mission statement: Manufacturing is the enviable position of creating products, processes and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I find manufacturing interesting: On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world. 

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