Givaudan starts construction on its new China-based facility

By Natasha Spencer

- Last updated on GMT

Givaudan starts construction on its new China-based facility

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As the flavours and fragrant leader lays the foundation for its hub in Changzhou, Jiangsu Province of China, the move represents the company’s biggest-ever investment in its Chinese fragrance activities.

Givaudan revealed, on 20th October 2017, that the perfumery name had laid a foundation for its new China-based production hub.

Three-year kickstart plan

The new hub, which is scheduled to begin operations in 2020, indicates the company’s dedication to building high growth in markets such as China through investment.

With central operations taking place in Changzhou at the site location, the facility is placed in one of the most economically developed areas in China.

Produced to increase Givaudan’s manufacturing capacity, the scents and tastes developer aims to maintain the “best-in-class service levels to its customers across North East Asia”​, it announced in its recent press release.

Givaudan injected a total investment of approximately CHF 100 mn (€85.5 mn). The development represents the company’s largest investment in China to date.

Investment plans

“This investment in this key high growth market is another significant milestone in achieving our 2020 strategy ambitions,”​ stated Gilles Andrier, Chief Executive Officer, Givaudan.

“By further building our capability in China, we confirm our position as a strategic partner to our customers in the region. We aim to continue growing with them to anticipate and meet future consumer needs and preferences in fragrances,”​ Andrier added.

The site is across a land area of 76,000 square metres. Using compounding technology, the facility will have a considerable amount of automation, which will be used on a wide range of fragrance manufacturing processes.

“The new fragrance production hub will cover all the key product forms such as fragrances, oral care flavours, and encapsulation in the same location,"​ said Maurizio Volpi, President of Givaudan’s Fragrance Division.

High growth in Asia

Commenting on the choice of investment in Asia, Volpi went on to say: “After our major investment in Singapore, we continue our expansion in Asia by laying the foundation of this very large facility in China, which demonstrates our long-term commitment in the region. It will support us in continuing to build on the strong partnerships that we have with our customers in the country.”

Growth, opportunities and operations are not the only focuses for Givaudan: “By investing in Changzhou, we are not only building a world-class fragrance facility, but we also aim to be an employer of choice and a good corporate citizen in the area,”​ Georges Sanchez, Company Manager of Givaudan Fragrances (Changzhou) went on to say. 

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