PepsiCo Opens First Overseas 'Green' Plant in China as Part of $1 Billion Investment Effort
CHONGQING, China, June 26 /PRNewswire-FirstCall/ -- PepsiCo (NYSE: PEP),
one of the world's largest food and beverage companies, opened its first
overseas "green" plant in China today in the western city of Chongqing as it
reiterated plans to invest $1 billion in the country. The state-of-the-art
beverage facility is important to the company's ongoing strategy to expand in
emerging markets and broaden its portfolio of locally relevant products.
PepsiCo plans to fund a variety of major capital programs to grow its
manufacturing capacity in China, particularly in interior and western areas.
Over the next two years, the company expects to open five new beverage
manufacturing plants -- in Kunming, Zhengzhou, Quanzhou, Lanzhou and Nanchang.
It also plans to invest to strengthen its local research and development
capabilities and broaden its portfolio of Chinese-designed and developed
products such as Tropicana Guo Bin Fen juices, Lay's Lychee potato chips and
Cao Ben Le drinks, which are inspired by traditional Chinese medicine.
"Despite the current uncertainty in many parts of the world, we have no
doubt that China will remain a powerful engine of global economic expansion,"
said Indra Nooyi, PepsiCo chairman and chief executive officer. "This is the
largest, most ambitious development effort we've undertaken in our more than
25 years of doing business here."
The Chongqing plant is the first "green" beverage plant ever built in
China -- and the first plant of any kind in the industrial center of Chongqing
-- to comply with the rigorous sustainable engineering standards known as
Leadership in Energy and Environmental Design (LEED), set by the Green
Building Council. The plant uses over 35 water and energy saving designs and
utilizes the world's most advanced technology, including an environmental
management system that monitors water and energy use on every production line
and every piece of individual equipment in real time.
"This plant reflects our deep and long-term commitment to China," said
Nooyi. "It is also an important milestone in our green journey, on which we
are partnering with the Chinese government, industry and others to continue to
promote the health and longevity of our planet."
The facility is designed to use 22% less water and 23% less energy than
the average PepsiCo plant in China. To save water, the plant utilizes a
high-pressure cleaning system, water-free conveyor belt lubricant and
water-saving fixtures. Plant associates re-use water for landscaping and
general cleaning instead of using potable water. To save energy, 75% of the
plant's indoor areas feature natural lighting, including a skylight in the
packing area and warehouse. A roof garden insulates the office building and
saves energy for cooling and heating.
The new plant is expected to help PepsiCo annually reduce greenhouse gas
emissions by 3,100 tons; water usage by 100,000 tons; and overall energy use
by four million kilowatt hours compared to the former Chongqing plant. It
also will serve as an educational center to raise awareness of good
environmental practices among students in the local community.
Today's announcement was made during a ten-day visit to China by Nooyi,
who is investing the time to learn more about the country by meeting with
consumers, employees, customers, business partners and government officials.
China is PepsiCo's fastest-growing foods market and its largest beverage
market outside the U.S.
PepsiCo is one of the world's largest food and beverage companies, with
2008 annual revenues of more than $43 billion. The company employs
approximately 198,000 people worldwide, and its products are sold in
approximately 200 countries. Its principal businesses include: Frito-Lay
snacks, Pepsi-Cola beverages, Gatorade sports drinks, Tropicana juices and
Quaker foods. The PepsiCo portfolio includes 18 brands that generate $1
billion or more each in annual retail sales. PepsiCo's commitment to
sustainable growth, defined as Performance with Purpose, is focused on
generating healthy financial returns while giving back to communities the
company serves. This includes meeting consumer needs for a spectrum of
convenient foods and beverages, reducing the company's impact on the
environment through water, energy and packaging initiatives, and supporting
its employees through a diverse and inclusive culture that recruits and
retains world-class talent. PepsiCo is listed on the Dow Jones Sustainability
North America Index and the Dow Jones Sustainability World Index. For more
information, please visit www.pepsico.com.
Statements in this release that are "forward-looking statements" are based
on currently available information, operating plans and projections about
future events and trends. They inherently involve risks and uncertainties that
could cause actual results to differ materially from those predicted in such
forward-looking statements. For additional information on these and other
factors that could cause PepsiCo's actual results to materially differ from
those set forth herein, please see PepsiCo's filings with the United States
Securities and Exchange Commission, including its most recent annual report on
Form 10-K and subsequent reports on Forms 10-Q and 8-K. PepsiCo undertakes no
obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise.