Nestle eyes sweet success in Qingdao

Nestle forms a complete industrial chain integrating food research and development, processing, packaging, storage, and transportation in Qingdao. [Photo/WeChat account: gh_f3e82fe3b50e]

Nestle Qingdao celebrated its 30th anniversary and held the groundbreaking ceremony for the ultra-high temperature sterilized milk production center in the food industry cluster zone of Laixi, Qingdao on April 12.

The ultra-high temperature sterilized milk production center, with an initial investment of 250 million yuan ($34.54 million), is set to commence production in June 2025, with an estimated annual production capacity of 70,000 metric tons of fresh milk.

During the groundbreaking ceremony, David Zhang, executive vice-president of Nestle SA and CEO of Zone Greater China, said that the efforts to create a strong business environment in Qingdao and Laixi have supported Nestle's rapid development in Qingdao and strengthened Nestle's confidence and determination to invest in and develop together with Laixi.

Over the past 40 years, Qingdao, as one of the first coastal cities in China to open to the outside world, has seen the establishment and growth of numerous global Fortune 500 companies, contributing to legendary stories of co-development with the city. Nestle is among these companies.

Nestle Qingdao was established in the county-level city of Laixi, Qingdao in 1994. Over the past three decades, it has built two factories for liquid milk products and instant coffee, an instant drink product innovation center, and an entrusted processing department for instant coffee management, forming a complete industrial chain integrating food research and development, processing, packaging, storage, and transportation. It has contributed significantly to the local area.

In 1996, Nestle Qingdao began producing dairy products in Laixi. It not only produces high-quality and delicious food for consumers but has also transformed the area into a productive and efficiently operated dairy zone, which has increased the incomes of local dairy farmers, contributing to rural revitalization.

Zhang added that since Nestle's establishment in Qingdao in 1994, its output value and production volume have steadily increased year by year, with its output surpassing 6 billion yuan in 2023.

The Nestle Qingdao factory has become the most important production base for Nestle Group in the Greater China region. In the future, Nestle plans to continue leveraging its global resources and experiences to serve the local market, further invest in China, deepen its presence in Qingdao, and increase its investment in innovation, production, and sustainable development, thereby continuing to contribute to the economic development, quality of life, employment, and diversification of the food industry in Qingdao and Laixi, according to Zhang.