Danone scales up nutrition manufacturing in China

French food and beverage giant Danone took a new step in its medical nutrition business in China on Oct 13 with the expansion of its Danone Nutricia plant in Wuxi, East China's Jiangsu province.

The expansion will add fully automated sterilization lines to boost production of enteral nutrition products. It will further strengthen Danone Nutricia's position in China's medical nutrition market and reflects the company's confidence in the country's open and innovation-driven market.

The company remains committed to advancing science-based and consumer-focused innovation in China, Antoine de Saint-Affrique, CEO of Danone, said at the topping-out ceremony for the plant’s expansion.

"Continued investment and innovation in China's medical nutrition sector are at the center of our Renew Danone strategy and shaping the future of health and nutrition," he said.

He added that with nearly 130 years of expertise in specialized nutrition, Danone is "committed to contributing to the global innovation and production of medical nutrition products, to better address both current and future health needs".

The project marks a new phase of growth for Danone's medical nutrition business in China, which supports the goals of Healthy China 2030 — a comprehensive public health strategy launched in 2019 to improve national health outcomes.

Advanced production, sustainable growth

Danone entered the Chinese market in the late 1980s and achieved rapid growth, leveraging the opportunities brought by China's economic reform and opening-up. The company's expansion not only reflected its own success but also played a role in advancing China's food industry.

Bruno Chevot, president of Danone China, North Asia, and Oceania, said that China is the company's second-largest market and a major engine for future growth. "The upgrade and expansion of our advanced medical nutrition production in Wuxi will allow us to deliver more tailored solutions to consumers with greater efficiency and precision," he said.

He added that strong local collaboration and efficient government support have played an important role in the project's success.

"Without the support of local authorities, we could not make things happen at China's speed and at China quality," Chevot said. "It's also hard to find a better place than China to apply the most advanced digital technologies that allow us to be efficient while reducing energy."

'In China, for China and the world'

Vikram Agarwal, COO of Danone, said that the Wuxi facility is an important part of the company's global supply network.

"With the completion of the expansion project, the plant will rank among Danone's most advanced worldwide, deploying leading-edge solutions in digital manufacturing," he said.

"The expansion will not only strengthen the resilience of our supply chain in China but also enhance our ability to deliver high-quality products to global markets with greater efficiency and consistency."

Danone Nutricia's Wuxi plant now covers enteral nutrition products and supporting medical devices that are widely used in oncology, stroke recovery, digestive health, and elderly care.

The factory exemplifies Danone's "in China, for China and the world" commitment, supporting the production of enteral nutrition and infusion systems not only for the Chinese market, but also for export to nearly 30 countries and regions worldwide.

Li Zhuoran and Hou Minhao in Wuxi contributed to the story.