Herbalife plans expansion in China

DIRECT selling company Herbalife plans to expand its manufacturing capabilities in China in anticipation of growth in this strategically important market. The plan calls for increasing capacity at the company’s existing facility in Jiangning High-tech Industry Park (JHIP) in Nanjing.

Herbalife said that the expansion of the Nanjing facility will ultimately provide 65% of the nutritional products in China. The company also has a manufacturing facility in Suzhou and a botanical extraction plant in Changsha.

Up to $40 million will be invested in the first phase of development to bring the facility up to the highest operating standards. This first phase is expected to be completed and the facility operational by the end of 2015.

“We are experiencing steady and sustainable growth in China and it is important that our infrastructure is robust enough to meet the demand we are seeing now, and expect to see in the future," said Richard Goudis, chief operating officer. "We have been impressed with the support from officials in Jiangning, and we are extremely encouraged by the positive discussions we have had with senior provincial, state, city and park officials, who are excited for us to increase our investments and presence in the region.”

JHIP is ideal for the expansion, Herbalife said, because of the unique environment it provides for companies operating in the life science industries, as well as the relative speed to operation in having only to renovate an existing facility. The industrial park brings together companies from across the entire industry – research and development; incubation; small- and large-scale manufacturing; and marketing – to create and foster innovation and intellectual collaboration.