Nestlé has increased the amount of capital spending being put towards expanding its pet-food production in China.

Last year, the Swiss giant set out plans to invest CNY600m (US$91.4m) in expanding capacity at its pet-food manufacturing site in Tianjin in the north of the country.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Nestlé has now officially launched two projects – a new line for dry pet food at its existing plant and a new factory for wet products, both on the same site – but upped its budget by another CNY230m.

A spokesperson for Nestlé’s business in China said the increase in investment would be put towards areas such as warehousing and to equipment to help reduce carbon emissions at the site. Part of the new tranche of spending will also go towards buying land for the wet pet-food factory and a “refinement in project-related cost and design”, the spokesperson added.

Nestlé is aiming for the new production line for dry pet food to begin output by the end of this year, while the new plant to make wet products is scheduled to start operations in the first quarter of 2023.

In a statement, the company said the investment would "strengthen Nestlé's leading position in China's domestic pet food industry".

Mirand Chan, the head of Nestlé's Purina PetCare business in Greater China, added: "Having been active in the Chinese market since 2001, our pet-food business receives major support from Nestlé, with a recent focus on facilitating the continued upgrading of consumption in the sector. The market has shown increasingly strong demand for high-quality pet food in terms of raw materials, nutrition and taste. Our new investments will help to deliver the best products to our consumers."