PepsiCo is planning to invest $100 million to expand and renovate a food factory in Shanghai. The company will add a new production line and introduce advanced packaging and warehousing technology at the Songjiang plant. The investment will increase the site’s production capacity for potato chips in line with demand among Chinese consumers.
According to the company, the expansion will provide approximately 370 direct jobs and reflects PepsiCo’s long-term commitment to China.
PepsiCo generated more than $63 billion in net revenue in 2017, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, and Tropicana.
PepsiCo’s product portfolio includes a wide range of enjoyable foods and beverages, including 22 brands that generate more than $1 billion each in estimated annual retail sales.
Ram Krishnan, president, and CEO of PepsiCo Greater China said: “China is one of PepsiCo’s global growth drivers. In the past 20 years, PepsiCo’s food business in China has been actively expanding and has achieved remarkable results. This capital investment not only reflects our ‘In China, For China, With China’ commitment but also represents the continuous investment made by PepsiCo based on changes in local demand. PepsiCo will continue to focus on China and strives to make greater contributions to its sustainable development.”
Over the past ten years, the company has invested RMB 48 billion ($7 billion) in its Chinese operation, entering the country’s food sector in 1993 with the introduction of Leshan potato chips. Today, the company’s food business in China has grown to incorporate seven food production plants, six large potato farms, and ten cooperative farms.