20th Jan 2005 11:23
Kerry Group PLC20 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, todayannounced details of the Group's business development programme for the Chinesemarket. 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, KerryGroup Chief Executive, announced details of a €20 million investment programmeby Kerry Group in China. Through this programme, Kerry will establishstate-of-the-art manufacturing, technical and administrative facilities inHangzhou in Zhejiang Province to meet the growing requirements for foodingredients and flavours for China's booming economy and fast growing dynamicconsumer market requirements. Mr Friel stated that the €20 million programmewill significantly expand the Group's asset and customer base in China throughthe acquisition of Hangzhou Lanli Food Industry Company Limited ("Lanli")located in Hangzhou in the Zhejiang Province and through the establishment of anew world class multi-processing manufacturing facility and technical centre ona 16 acre greenfield site in the HEDA Economic Zone (Hangzhou Economic andTechnological Development Area). The acquisition of Lanli will be completed by the end of March 2005 and thegreenfield development programme will commence mid-year with all facilities tobe fully commissioned by year-end 2006. Mr Friel said; "Since the Group openedits first Representative Office in Shanghai in 2000, our Kerry Ingredients andMastertaste (flavours and fragrance) divisions have progressively expanded theGroup's customer base in China. More recently our new Kerry Bio-Sciencedivision, established following the Group's acquisition of Quest FoodIngredients in May 2004, has also further developed its presence and technologyoffering in the region". "Building on our localisation strategy - in terms of successfully serving ourmultinational and local customer requirements in all major global consumermarkets - the administrative, technical and logistics headquarters for all Kerrybusinesses in China will also transfer to the new facilities in Hangzhou - thusserving as an important platform for the Group's planned market development inone of the most rapidly evolving consumer markets in the world embracingpotentially 1.3 billion consumers. This will be further supported by satellitecommercial/application centres in Beijing, Shanghai and Guangzhou," Mr Frieladded. He concluded; "With changing consumer trends and nutrition requirements,particularly in major population centres of the vast Chinese market, this regionwill be a major focus for the Group and its food manufacturing and foodservicecustomers in the decade ahead. Kerry's food ingredients and flavourtechnologies will be focused on the significant growth opportunities in China inthe food processing and foodservice sectors - particularly in nutritional,dairy, flavoured noodle, brewing, flavoured beverage, snack and bakery marketsegments". In addition to the planned development of the Group's Chinese operations, Kerrycontinues to achieve excellent progress in expanding its Asia Pacific marketpresence from its operations in Australia, New Zealand, the Philippines,Thailand and in Malaysia where prior to year-end 2004 the Group also concludedthe acquisition of Ernsts Food Ingredients located in Penang. Building onKerry's highly successful Johor Bahru facilities, the acquisition of Ernsts FoodIngredients brings additional manufacturing capacity to meet Kerry's growthobjectives in the nutritional, beverage and snack sectors in South East Asianmarkets. Note for Editor: Kerry Group is a leading global food company committed to driving the continuedgrowth and development of its ingredient, food and flavour businesses.Headquartered in Tralee, Co Kerry, Ireland, the company has in excess of 20,000employees and operates from over 150 manufacturing facilities in 18 countriesover five continents. With annualised sales in excess of €4 billion, approximately 20% of Group salesare 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 7182304Frank Hayes, Fax: 353 66 7182972Director of Corporate Affairs, email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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