Givaudan’s facility expansion sees flavor production capacity doubled in China

27 Nov 2019 --- Givaudan has inaugurated a new extension to its Nantong manufacturing facility which will double the company’s flavor production capacity in China. The flavor giant is investing an additional CHF30 million (US$30 million) to support its growth ambitions in the country and meet the growing consumer demand for healthier products. The total investment in the Nantong facility is now CHF80 million (US$80 million). Company CEO, Gilles Andrier, says the larger Nantong site, will allow Givaudan to collaborate and deliver creative taste solutions to “the ever-evolving Chinese market.”

The expansion aims to support the capacity on liquid flavor production for beverages, dairy and sweet goods and overall underlines the growing importance of the Chinese market to Givaudan.

The new 16,000 square-meter addition to the original site will enable Givaudan to meet the growing demand from customers in the food and beverage segments with approximately 95 percent of the total production capacity that will support its customers in China. 

The Nantong manufacturing facility will also bolster the company’s existing capabilities in savory and culinary flavor blends, snack seasonings, spray dries and liquid flavors. Approximately 150 people are currently employed on the site.

“We are delighted to open the new extended space at our Nantong facility. The total investment we have made on the Nantong site supports our strategic goal of increasing Givaudan’s footprint in high growth markets and capturing growth opportunities,” says Andrier. “More importantly, the larger Nantong site will now enable Givaudan to collaborate even more closely with our customers to deliver innovative and creative tasHealth and wellbeing, multi-sensorial experiences, personalized and targeted nutrition are just some of the trends driving innovation in China currently.te solutions,” he adds. 

Tapping into China 
Premiumization, health and wellbeing, multi-sensorial experiences, personalized and targeted nutrition, as well as balancing taste and nutrition, are just some of the trends driving innovation in China currently. Since the introduction of economic reforms in the late 1970s, China’s economy has been one of the world's fastest-growing with annual growth rates consistently above 6 percent, according to the World Bank. As of 2016, it is the world's second-largest economy by nominal Gross Domestic Product (GDP) and largest by purchasing power parity (PPP). China is also the world's largest exporter and second-largest importer of goods.

China’s large population with steady growth in GDP, urbanization alongside the rising middle class are also attractive factors that make the country a strategic focus for food and beverage companies. 

“China’s economy has blossomed quickly over the years and is now the world’s second biggest economy. As a result, we have seen a tremendous growth in the food and beverage industry coming from local players,” explains Givaudan’s APAC Commercial Head, Flavors, Monila Kothari. “Given this rapid transformation, we now have a manufacturing facility that can support our business development strategy in China. This expansion will enable us to be agile as we address the needs of our customers in China,” she adds.

The manufacturing facility is also making important contributions to Givaudan’s Climate Action Agenda. It was certified as “Environment-friendly Green Enterprise” by the Environment Protection Bureau of Nantong Economic & Technological Development Area (NETDA).

The opening ceremony was held at the Nantong site, was attended by Givaudan’s management alongside NETDA and Swiss consulate dignitaries and Givaudan’s local management members.

The foundation for the Nantong manufacturing facility was first laid in April 2013. The facility has since pushed out its first commercial production in April 2015. Commercial production at the extended site started in July earlier this year.

Givaudan has also been responding to health and wellness trends in Africa and the Middle East. Speaking to FoodIngredientsFirst earlier this month, the company highlights that Givaudan is proactively invested in finding taste solutions to support the journey of health and wellness in these regions. This includes reducing sugar, salt and fat. This closely follows announcements that the UAE will apply a 50 percent excise tax on sugar-sweetened beverages (SSBs).

In June, the flavor giant also inaugurated its flagship Innovation Center in Kemptthal, Switzerland, a move which will accelerate the company's global efforts in creating differentiated and sustainable flavor, taste and fragrance solutions for the food & beverage and beauty, personal and home care industries.

FoodIngredientsFirst has reached out to Givaudan for further details. 

By Gaynor Selby