PepsiCo, the US multinational food and beverage company, broke ground on its first food production base in Xi’an, Northwest China’s Shaanxi province on Wednesday.
This new facility marks PepsiCo’s fifth major investment in China over the past five years, showcasing the company’s confidence in the Chinese market.
The $180 million facility is designed to meet international “net-zero emissions” standards and is expected to begin trial operations in September 2025, with an anticipated production capacity of around 25,000 tons to cater to the growing market demand across seven provinces in Northwest China.
“PepsiCo has full confidence in the high-level opening-up of the Chinese market and the high-quality development of the Chinese economy,” said Anne Tse, CEO of PepsiCo Greater China and chief consumer officer of PepsiCo Asia-Pacific.
“As a leading global food and beverage company, we are committed to accelerating our investment in China with a record of five new plants over five years, and we aim to provide consumers with higher-quality products.”
The Shaanxi food production base is PepsiCo’s 10th food factory in China, with an initial investment of $80 million and an initial construction area of about 32,000 square meters. The facility will feature two new automated potato chip production lines, along with supporting infrastructure including warehouses, cold storage, power facilities, and wastewater treatment systems.
As a new digital and intelligent demonstration factory, the base will introduce advanced automation technologies in production, packaging, and warehousing, contributing to local industrial upgrades and talent development.
“PepsiCo will continue to ‘root in China, work with China, and serve China’, leveraging its industrial chain cluster effect to contribute to China’s economic and social development,” Tse added.
