Herbalife Ltd. HLF, a leading global nutrition company, today announced
plans to expand its manufacturing capabilities in China, as it looks to
increase its capacity in line with anticipated growth in this strategically
important market. This would add to Herbalife's existing manufacturing
facilities in Suzhou, and its botanical extraction plant in Changsha.
Herbalife has identified an existing, newly built facility in Jiangning
High-tech Industry Park (JHIP), Nanjing as the location for its newest
manufacturing facility, due to the unique environment it provides for
companies operating in the life science industries, as well as the relative
speed to operation in having only to renovate an existing facility. JHIP
brings together companies from across the entire industry – research and
development; incubation; small- and large-scale manufacturing; and marketing –
to create and foster innovation and intellectual collaboration. Herbalife will
invest up to $40MM USD in a first phase of development, to bring the facility
up to the highest operating standards. This first phase is expected to be
complete and the facility operational by the end of 2015, with the potential
for a second phase of development, given the size and flexibility of the
facility. This new facility will ultimately provide up to 65% of the company's
total product requirements in China.
Richard Goudis, chief operating officer, Herbalife said, “We are experiencing
steady and sustainable growth in China and it is important that our
infrastructure is robust enough to meet the demand we are seeing now, and
expect to see in the future. We have been impressed with the support from
officials in Jiangning, and we are extremely encouraged by the positive
discussions we have had with senior provincial, state, city and park
officials, who are excited for us to increase our investments and presence in
the region.”
Herbalife received its first direct-selling license in China in March 2007 and
now has licenses for the company to conduct its direct-selling business in 25
provinces, municipalities or autonomous regions. The Herbalife Innovation and
Manufacturing facility in Suzhou was opened in 2009 and was the company's
first owned manufacturing facility anywhere in the world. The botanical
extraction facility in Changsha, Hunan province came into full operation in
2013.
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