EUR20million Investment-China
Kerry Group PLC
20 January 2005
Press Announcement
20 January 2005 For immediate release
Kerry Group announces
€20 million Investment Programme in China.
Kerry, the global ingredients, flavours and consumer foods group, today
announced details of the Group's business development programme for the Chinese
market.
At a signing ceremony in Shanghai attended by An Taoiseach Mr Bertie Ahern T.D.,
on the occasion of the Taoiseach's official visit to China, Hugh Friel, Kerry
Group Chief Executive, announced details of a €20 million investment programme
by Kerry Group in China. Through this programme, Kerry will establish
state-of-the-art manufacturing, technical and administrative facilities in
Hangzhou in Zhejiang Province to meet the growing requirements for food
ingredients and flavours for China's booming economy and fast growing dynamic
consumer market requirements. Mr Friel stated that the €20 million programme
will significantly expand the Group's asset and customer base in China through
the acquisition of Hangzhou Lanli Food Industry Company Limited ('Lanli')
located in Hangzhou in the Zhejiang Province and through the establishment of a
new world class multi-processing manufacturing facility and technical centre on
a 16 acre greenfield site in the HEDA Economic Zone (Hangzhou Economic and
Technological Development Area).
The acquisition of Lanli will be completed by the end of March 2005 and the
greenfield development programme will commence mid-year with all facilities to
be fully commissioned by year-end 2006. Mr Friel said; 'Since the Group opened
its first Representative Office in Shanghai in 2000, our Kerry Ingredients and
Mastertaste (flavours and fragrance) divisions have progressively expanded the
Group's customer base in China. More recently our new Kerry Bio-Science
division, established following the Group's acquisition of Quest Food
Ingredients in May 2004, has also further developed its presence and technology
offering in the region'.
'Building on our localisation strategy - in terms of successfully serving our
multinational and local customer requirements in all major global consumer
markets - the administrative, technical and logistics headquarters for all Kerry
businesses in China will also transfer to the new facilities in Hangzhou - thus
serving as an important platform for the Group's planned market development in
one of the most rapidly evolving consumer markets in the world embracing
potentially 1.3 billion consumers. This will be further supported by satellite
commercial/application centres in Beijing, Shanghai and Guangzhou,' Mr Friel
added.
He concluded; 'With changing consumer trends and nutrition requirements,
particularly in major population centres of the vast Chinese market, this region
will be a major focus for the Group and its food manufacturing and foodservice
customers in the decade ahead. Kerry's food ingredients and flavour
technologies will be focused on the significant growth opportunities in China in
the food processing and foodservice sectors - particularly in nutritional,
dairy, flavoured noodle, brewing, flavoured beverage, snack and bakery market
segments'.
In addition to the planned development of the Group's Chinese operations, Kerry
continues to achieve excellent progress in expanding its Asia Pacific market
presence from its operations in Australia, New Zealand, the Philippines,
Thailand and in Malaysia where prior to year-end 2004 the Group also concluded
the acquisition of Ernsts Food Ingredients located in Penang. Building on
Kerry's highly successful Johor Bahru facilities, the acquisition of Ernsts Food
Ingredients brings additional manufacturing capacity to meet Kerry's growth
objectives in the nutritional, beverage and snack sectors in South East Asian
markets.
Note for Editor:
Kerry Group is a leading global food company committed to driving the continued
growth and development of its ingredient, food and flavour businesses.
Headquartered in Tralee, Co Kerry, Ireland, the company has in excess of 20,000
employees and operates from over 150 manufacturing facilities in 18 countries
over five continents.
With annualised sales in excess of €4 billion, approximately 20% of Group sales
are currently in Ireland, 47% in the rest of Europe, 27% in the Americas and 6%
in Asia Pacific markets.
For further information please contact: Telephone: + 353 66 7182304
Frank Hayes, Fax: 353 66 7182972
Director of Corporate Affairs, email: corpaffairs@kerry.ie
This information is provided by RNS
The company news service from the London Stock Exchange
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