Givaudan Invests in Nantong, China Savory Flavors Manufacturing Facility

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Gilles Andrier at the groundbreaking ceremony for Givaudan's Nantong savory facility

Givaudan SA is investing RMB 335 million (CHF 50 million) into a new manufacturing facility focused on savory flavors in Nantong, China, marking the company's largest investment in China since 2006.

The flavors and fragrance company said the new facility will substantially increase its current savory production capacity and enable it to serve customers in China more efficiently. The new site is expected to be fully operational in 2015 and will employ over 100 staff members. 

The new facility will produce culinary flavor blends, snack seasonings, spray dries and process flavors to meet rising demand from Chinese customers. The company said the new facility will meet the highest global quality standards including adherence to the strictest allergen management principles.

“The Nantong savory plant supports Givaudan’s global strategic initiatives to grow our business in emerging markets such as China," CEO Gilles Andrier said at the groundbreaking ceremony. "These markets offer immense market potential due to ongoing urbanization and rise of disposable income."

With an increasing level of consolidation and sophistication, the China flavors market has a total market potential of RMB 6.7 billion (CHF 1 billion) and Compound Annual Growth Rate is expected to reach 6.6% by 2015, according to Euromonitor data. Givaudan said China remains one of its most significant emerging markets.