August 18, 2011

Abbott Laboratories said Tuesday (Aug 16) it will invest US$230 million to build a powdered milk manufacturing plant in Jiaxing, China.

The facility represents Abbott's largest investment in China to date and will produce premium powdered milk products for Chinese infants and children.

At the same time, the company said it anticipates launching a number of new product innovations over the next three years across the pediatric nutrition category in China. More than 17 million infants are born each year in China.

"Building a strong local manufacturing base will position us to better provide Chinese parents the same high-quality products they rely on today, even faster," said John Landgraf, Abbott executive vice president, Nutritional Products.

The plant, when operational in 2013, will employ approximately 300 people.

The new facility in Jiaxing will add to Abbott's five manufacturing and research and development facilities in its nutrition and pharmaceuticals businesses in the Asia-Pacific region, including three in China.

Abbott expects to increase its nutrition revenues in China to more than US$1 billion by the end of 2014. China also continues to be an important part of Abbott's emerging markets strategy.