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Laixi expands cooperation with Nestle

(chinadaily.com.cn) | 2020-01-10

Laixi, a county-level city in Qingdao, with its optimized business environment and efficient government services, has gained more investment from Nestle, the world's largest food and beverage company.

Recently the Laixi government and Nestle China's headquarters in Beijing signed an agreement to further cooperation on R&D and production of healthy food, supplementary food for infants and young children, and milk supply.

This marks another major project in Laixi for the world top 500 company, clearly due to the selfless and noble efforts by local authorities to improve the business environment and government services.

At the beginning of 1994, Nestle established the Nestle Qingdao Ltd and set up a factory in Laixi, which mainly produces dairy products such as condensed milk, UHT milk and light cream.

Nestle's Laixi base has promoted the development of the local dairy-farming industry. Laixi's dairy herds now total 72,000 cows, producing 500 tons of fresh milk on a daily basis with annual revenue of 700 million yuan ($101 million).

Zhao Lan, general manager of Nestle's factory in Qingdao, revealed that the infant supplementary food project initially considered several cities and after nearly six months of negotiations, it finally decided on Laixi.

Zhao said that this is partially because Nestle already has plants and facilities in Laixi that meet the project's production requirements, while the city, as an agricultural base, can provide raw materials for production.

"The most important reason is that the local business environment and quality government services have increased our confidence in continuing investment," said Zhao.

According to Zhao, the local government has offered support in various aspects such as public utilities supply and construction land use.