The Laixi Municipal Government and Qingdao Nestle Co Ltd held a signing ceremony on Sept 3 for a strategic cooperation agreement on the UHT and coffee creamer projects, representing a total investment of 2 billion yuan ($298 million).

The agreement marks a significant milestone in Laixi's industrial chain development and the expansion of its health food and beverage cluster.

By deepening collaboration with the global food giant, the projects are expected to accelerate Laixi's cultivation of new quality productive forces and drive the high-end, intelligent, and green transformation of the local food industry.

Earlier, Nestle's Qingdao plant had already launched the UHT Phase I and 1.8-gram small-package coffee production lines, receiving EFFSO Industry 4.0 certification and being recognized as a Shandong provincial advanced smart factory.

Nestle first established its liquid dairy plant in Laixi in 1994. Over the past 32 years, it has set up a coffee factory, a product innovation center, and a Gerber puree production line in the city.

At present, the Laixi facility serves as Nestle's exclusive liquid dairy and instant coffee manufacturing base within Greater China. It also stands as the only plant in the Asia-Africa-Oceania region capable of producing Gerber wet products, enabling a diversified and high-value production structure.

Nestle's presence has also helped Laixi become one of Shandong's largest dairy production bases, currently supporting 74,700 dairy cows and an annual milk output of 200,000 metric tons.

From liquid dairy to Gerber wet products, Nestle's Laixi plant holds a one-of-a-kind position across Greater China and three continents. [Photo/Guanhai News]