FDBusiness.com

PepsiCo and Tingyi, one of the leading food and beverage companies inChina, have official opened a new beverage manufacturing plant in Zhengzhou, China. The Zhengzhou PepsiCo Beverages facility is the first plant opened since the two companies formed their strategic alliance earlier this year.

The new plant is part of Tingyi’s and PepsiCo’s expansion strategy in China, projected to become the world’s largest beverage market by 2015. The Tingyi-PepsiCo alliance is already the number one liquid refreshment beverage system in China, with more than 70 plants and a national distribution network.

The Zhengzhou plant also delivers on the pledge made by both companies to support economic development in China’s central and western regions.

Indra Nooyi, chairman and chief execuitve of PepsiCo, comments: “China is a dynamic food and beverage market and a critical engine of growth for PepsiCo. Our game-changing alliance with Tingyi is off to an excellent start, and we see tremendous opportunities to further expand our business throughout the country. The Zhengzhou plant is a gateway to the growing markets of central and western China and will enable us to put more PepsiCo products in the hands of more consumers than ever before.”

The Zhengzhou plant covers 24,000 square meters and includes two state-of-the-art beverage production lines, with room to add additional lines in the future. It will supply the beverage marketplace in Henan province, while further enhancing the companies’ ability to provide consumers throughout central and western China with a wider range of beverage choices.

The plant will create approximately 500 direct jobs, as well as thousands of indirect jobs in the surrounding communities.

PepsiCo’s expansion in China is part of the company’s overall plan to drive growth in emerging and developing markets around the world. PepsiCo nearly tripled its business in emerging and developing markets from $8 billion in annual revenue in 2006 to $22 billion in 2011.