ZHENGZHOU, China, Oct. 25, 2012 /PRNewswire/ -- Tingyi (Cayman Islands) Holding Corp. (Tingyi) (0322.HK), one of the leading food and beverage companies in China, and PepsiCo, Inc. (NYSE: PEP), 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.
The official plant opening was attended by Mr. Zhao Jian Cai, Vice Governor of Henan provincial government; Mr. Ma Yi, Mayor of Zhengzhou municipal government; Mr. Zhao Rui Dong, member of the Zhengzhou municipal government standing committee; Mr. Cui Shao Ying, Party Secretary of Zhengzhou Economic Development Zone; Mr. Wang Gui Xin, Director of Zhengzhou Economic Development Zone; and several other leading officials of the Henan provincial and Zhengzhou municipal government.
Mr. Wei Ing-Chou, Chairman of Tingyi Holding Corp. officially opened the new plant along with Mrs. Indra Nooyi, Chairman and CEO, PepsiCo, and Mr. Hubert Xu, Managing Director of CDC Investment Consultants Limited, who is also a local partner of the Zhengzhou plant.
Zhengzhou municipal government Mayor Ma said: "Zhengzhou is a famous historical and cultural city in China with a unique reserve of cultural and natural resources. Tingyi is a well-recognized and respected Chinese company, and PepsiCo is one of the most successful consumer goods companies in the world. Their products are known and loved by millions of Chinese consumers. We thank Tingyi and PepsiCo for choosing Zhengzhou, the city at the heart of China, as the home of their new plant to jointly contribute to the development of the central region. The municipal government appreciates the critical role played by the business community in facilitating local economic development. We will continue to support the development of the Tingyi-PepsiCo alliance in Zhengzhou."
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 technologies installed in the facility are expected to reduce energy consumption by 29 percent and water usage by 20 percent compared to the standard beverage plants in China, which has the dual benefit of reducing operating costs and achieving important environmental objectives.
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 $22 billion in 2011.
About Tingyi Holding
Tingyi Holding Corp. is China's leading food and beverage company that specializes in the production and distribution of instant noodles, beverages and baked goods in the PRC. Tingyi started its instant noodle segment in 1992 under the brand of Master Kong, and expanded into the bakery segment and beverages in 1996. The philosophy of Tingyi is to provide consumers with safe, tasty quality products with value for money. With sophisticated production processes, outstanding operation, innovative products and CSR campaigns, Tingyi is widely respected in China's consumer industry. Continuous attention to operations at the community level in the past 20 years has made "Master Kong" one of the most recognized brands. The Company has also made big contributions to rural, agricultural and farmers' development. For three consecutive years from 2008 to 2010, Tingyi was named one of the 50 best listed companies in Asia by Forbes for its solid financial track record and excellent management and entrepreneurial skills. As of September 30, 2012, market capitalization of the Company exceeded US$ 16.9 billion. The company is one of the constituents of Hong Kong Hang Seng Indexes (HSCI). For more information, please visit www.masterkong.com.cn.
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. Our main businesses – Quaker, Tropicana, Gatorade, Frito-Lay and Pepsi-Cola – make hundreds of enjoyable foods and beverages that are loved throughout the world. PepsiCo's people are united by our unique commitment to sustainable growth by investing in a healthier future for people and our planet, which we believe also means a more successful future for PepsiCo. We call this commitment Performance with Purpose: PepsiCo's promise to provide a wide range of foods and beverages for local tastes; to find innovative ways to minimize our impact on the environment by conserving energy and water and reducing packaging volume; to provide a great workplace for our associates; and to respect, support and invest in the local communities where we operate. For more information, please visit www.pepsico.com.