CHINA – Fast food restaurant licensee Yum China and French fries processor Land Weston have announced new investments that will see them expand their respective capacities in China.
In a statement, Yum China, the owner of exclusive rights to fast food restaurants such as KFC, Pizza Hut and Taco Bell in China, said it will invest US$27.9 million in the construction of a new logistics hub in Chengdu, China.
The company says that the new hub will significantly enhance the firm’s supply chain capabilities and cold chain logistics service in southwest China.
The new 34,000 square meters logistics hub will reportedly combine integrated supply chain services, Internet of Things (IoT) technology, big data platforms and high-quality cold chain logistics facilities.
The centre, expected to be operational by mid-2022, will support Yum China’s existing supply chain network, which includes 25 logistics centres and seven consolidation centres, collectively serving more than 1,500 cities in the country.
Commenting on the new investments, Joey Wat, CEO of Yum China, said that the 2020 pandemic reinforced Yum China’s determination to further invest in its supply chain infrastructure to better respond to external challenges.
Since its inception in 1987, Yum China has grown and today boasts of over 10,000 stores in more than 1,500 cities.
“Looking forward, Yum China aims to create a stronger and more agile supply chain network to support the company’s long-term growth, allowing us to reach the goal of 20,000 stores even faster,” Wat added.
Lamb Weston invests in new french fry facility in China
As the master franchisee for KFC and other leading brands in China was expanding its operational capacity, French fries maker Lamb Weston was mulling expanding its processing capacity.
The company which is one of the world’s largest producers and processors of frozen french fries and other frozen potato products says will invest approximately US$250 million to build a new french fry processing facility in Ulanqab, China.
According to Lamb Weston, the new facility will have the capacity to produce over 250 million pounds of frozen french fries and other potato products per year.
Construction of the new facility is anticipated to be completed in the first half of 2024, Land Weston said adding that 280 jobs will be created once the facility is operational.
The new site will support Lamb Weston’s existing French fry production operations in China, as the company already operates a second dedicated site in Shangdu.
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