PepsiCo Will Invest Additional $2.5 Billion in China
May 24, 2010
The Associated Press reports PepsiCo Inc. announced plans to invest an additional $2.5 billion in China in the next three years on new plants and research facilities. The company''s overseas business has become a strong factor in its success, with PepsiCo reporting last month that international growth pushed its first-quarter profit up 26 percent, as people in developing countries bought more of its snacks and drinks. The company posted double-digit gains in sales of snacks and beverages in India and China. Money from the investment in China will be used to open 10 to 12 new manufacturing plants, create a new research and development center, open five new farms for potatoes and oats and to build its brands. The new plants will be used to make soft drinks, juices and other drinks and snacks. Additional production lines will also be installed at existing facilities. Plants will be built in the provinces of Fujian, Gansu, Henan and Yunnan in the next two years as part of PepsiCo''s plan to expand in interior and western China. The company will research and develop new products just for the Asian market. It already offers drinks inspired by traditional Chinese medicine and Lay''s potato chips in flavors tailored just to the market, including cool cucumber and crispy prawn.