25 October 2012

Tingyi and PepsiCo Open New Beverage Plant in Zhengzhou, China

Zhengzhou, China – 25 October 2012 (PRNewswire) - Tingyi (Cayman Islands) Holding Corp., one of the leading food and beverage companies in China, and PepsiCo, Inc., one of the world's largest food and beverage companies, today announced the official opening of a new beverage manufacturing plant in Zhengzhou, China. 

The Zhengzhou PepsiCo Beverages Co., Ltd. (Zhengzhou Pepsi) 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. 

Mr. Wei Ing-Chou, Chairman of Tingyi Holding Corp., said: "We are grateful for the support and assistance given by the government of Henan province and Zhengzhou to the Tingyi-PepsiCo alliance and to our new Zhengzhou plant. We are confident that the operation of the new plant will create more business opportunities in central and western China and allow us to provide better service for consumers and make due contributions to the healthy development of China's beverage industry." 

Mrs. Indra Nooyi, Chairman and CEO of PepsiCo, said: "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

The facility was built in accordance with criteria set by Leadership in Energy and Environmental Design (LEED), the world's leading green building standard. The Tingyi-PepsiCo system now includes four LEED-certified plants in China, with Zhengzhou joining beverage manufacturing facilities in Chongqing, Nanchang, and Kunming. 

PepsiCo and Tingyi completed their strategic beverage alliance on March 31, 2012. The alliance provides Chinese consumers with several of the country's most popular beverage products, including: Pepsi-Cola, China's top-selling cola; Mirinda, China's top-selling flavored carbonated soft drink; Gatorade, one of China's top-selling sports drinks; China's top-selling tea and water brands, sold under the Master Kong brand name; and China's largest juice portfolio. 

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

Source: PepsiCo