Kerry Group will invest €20 million in an ingredients and flavourings factory to service the Chinese market and has announced the acquisition of a Chinese food company.
Details of the investment were announced today at a signing ceremony in Shanghai attended by the Taoiseach, Mr Ahern, and Mr Hugh Friel, Kerry Group's chief executive.
Kerry will establish the facility in Hangzhou in Zhejiang Province.
Mr Friel said Kerry's Group presence in the China will also be significantly expanded through the acquisition of Hangzhou Lanli Food Industry Company Limited ('Lanli') in Hangzhou.
The acquisition of Lanli will be completed by the end of March 2005 and the greenfield development programme will commence mid-year, with all facilities to be fully commissioned by year-end 2006.
Kerry opened its first office in Shanghai in 2000 targeting on the flavours and fragrance market. More recently Kerry's bio-science division has established itself in China.
Mr Friel said that with 1.3 billion potential customers China will be a "major focus" for the group and its food manufacturing and foodservice customers in the decade ahead.