Kerry in €20m China deal
The majority of the money will be spent on building a new manufacturing facility on a 16-acre green-field site in Hangzhou city in Zhejiang province.
The remainder will be spent on acquiring Lanli, a Chinese food business located in the same city.
Kerry would not reveal the exact proportion of the €20m it was spending on either development, citing "competitive reasons."
"With changing consumer trends and nutrition requirements, particularly in major population centres of the vast Chinese market, this region will be a major focus for the group and its food manufacturing and food service for customers in the decade ahead," said Mr Friel.
Kerry has annualised global sales of more than €4 billion, but the Asia-Pacific region accounts for just 6% of this. The group has expanded significantly in the region. It has four sales offices in China: Beijing; Shanghai; Guangzhou, and Hong Kong. The new plant will be the group's first manufacturing facility in the country. Work on the plant will begin in the summer, and Kerry expects to have it up and running by December 2006.
The acquisition of Lanli is expected to be completed by the end of March.
The two developments will mean Kerry expanding its workforce in China from approximately 200 to 500.
Yesterday's signing ceremony was held as part of the Irish trade mission to China, organised by Enterprise Ireland and led by Taoiseach Bertie Ahern.
Mr Ahern said Kerry's expansion plans marked another milestone in the activities of the "highly sophisticated and successful" Irish multinational, which employs over 20,000 people in five continents.
"Across so many countries, so many products, so many plants, they continue to grow strong," Mr Ahern said, adding that Ireland was very proud of what the group had achieved.
Kerry also confirmed yesterday it is looking to acquire the ingredients division of Danish food and pharmaceutical group, Chr Hansen.
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