Givaudan invests in new site to capture Chinese growth
Swiss flavor and fragrance company Givaudan said at the end of last week that they were expanding into a new production site in China, which is expected to open next year. The group said it was investing €86 million into the facility, which will be based at Changzhou, and represents Givaudan’s biggest move in the country yet.
It’s expected to open in 2020 and will join the company’s other Chinese facilities – notably, the manufacturing site in Nantong, which is slated for a 2020 opening – to produce perfume fragrances and “aromas used in oral hygiene products”.
Givaudan’s share price has risen by 17% so far this year
SOURCE: Yahoo Finance
According to Gilles Andrier, Givaudan’s CEO, the Chinese market will be pivotal to the company’s growth in coming years. He said: “with this investment in a market undergoing strong growth we are taking another step towards achieving our strategic ambitions through to 2020.”
Givaudan will be hoping that the success it has found in the west, where it works with some prestige names in the perfume industry, like Christian Dior and Prada, can be replicated in the east. As the country’s luxury sector picks back up after a dicey couple of years, and its economy continues to grow at a breakneck rate, the company can be forgiven for thinking its found the next big market to capitalize on.
Dominion holds Givaudan in its Global Trends Managed Fund.
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