The project completion ceremony was held for the state-of-the-art Yinlu food factory located in the Chuzhou National Economic and Technological Development Zone in Anhui Province Thursday, July 11, 2013.

With a total investment of RMB2.1 billion, the Anhui Yinlu factory is Xiamen Yinlu Food Group's third largest modern production base outside of Xiamen Province. Covering 1,100 mu (about 730,000 square-meter) with a 370,000 square-meter builds up area.

The new factory will have the capability to process 900,000 tonnes for peanuts, rice, wheat, red beans, mung beans and other agriculture produce, and will create over 2,000 direct jobs, generating significant social and economic benefits.

It will lay a solid foundation for the continued growth of Yinlu brand recognition and reputation, further increase the national penetration of Yinlu products, and expand Yinlu's core businesses.

Paul Bulcke, CEO, Nestlé S.A., said at the ceremony: "The launch of the new Anhui Yinlu factory represents both our long-term commitment to the China market and our commitment to further developing local brands.

We are proud to see that the cooperation between Nestlé and Yinlu has been fruitful. This move will definitely bring more healthy, affordable and delicious products to Chinese consumers."

Chen Qingyuan, President of Yinlu Foods Group, commented: "The completion of the new factory is a very important milestone in Yinlu's continuous brand and production capacity growth. Since we joined hands with Nestlé in 2011, Nestlé's successful experience has provided strong support for Yinlu's sustained growth.

We will continue to work together to win over consumers."

At the ceremony, representatives from Nestlé expressed their thanks to the central government and local governments at various levels. It is due to their support that stakeholders and the whole community can benefit. Roland Decorvet, Chairman & CEO, Nestlé GCR, also reiterated Nestlé's confidence in the China market and its commitment to the development of the central and west region.

Present in the launch ceremony were leaders from Anhui Province and Chuzhou city government; Paul Bulcke, CEO, Nestlé S.A; Nandu Nandkishore, Executive Vice President Nestlé S.A. & Zone Director for Asia, Oceania, Africa and Middle East; Roland Decorvet, Chairman & CEO, Nestlé GCR; Chen Qingyuan, President, Yinlu Foods Group.

Background

Nestlé in China

Nestlé is the world's foremost Nutrition, Health and Wellness company with sales of CHF 92.2 billion in 2012. The company was one of the first multinational companies to enter the Chinese market in a fully committed way after the open door policy. In 1990 Nestlé started its local production by establishing its first factory in Shuangcheng, Heilongjiang Province.

Today, Nestlé operates 33 state-of-the-art factories in the Greater China Region and employs 50,000 regular employees. 90% of Nestlé products sold in China are locally manufactured.

Nestlé business activities are guided by its commitment to Creating Shared Value for both the company shareholders and the local communities. The company's signature Creating Shared Value examples in China are milk district development in Inner Mongolia, Heilongjiang and Shandong and the coffee development program in Yunnan Province.

Well-known Nestlé brands marketed in the Greater China Region include: NESCAFé, NESPRAY, KLIM, CARNATION,LACTOGEN, NAN, NUTREN, NESVITA, NESTEA, MILO, POLO, FIVE RAMS, CHEERIOS, FITNESS, NESTLé EAGLE, DAIRY FARM, PAK FOOK, NESTLé PURINA PETCARE, NESTLé PURE LIFE, NESTLé DEEP SPRING, MAGGI, TOTOLE, DASHAN, YINLU, HSU FU CHI, and WYETH.

Nestlé and Yinlu

In 2011, Nestlé acquired a 60% stake in Yinlu Food Group to form a joint venture.

Yinlu is a well known household brand in China and its main products include peanut-milk protein drinks and Eight Treasure Congee. Yinlu's products are tailored to Chinese consumers' taste and habits, and complement Nestlé's existing product portfolio in China, which includes culinary products, coffee, confectionery, bottled water, milk powder and products for the foodservice industry. Healthy and nutritious Yinlu products perfectly fit into Nestlé's global portfolio and emphasize its core strategy as the world's leading Nutrition, Health and Wellness company.

Yinlu in Anhui

Anhui Yinlu Food Co., Ltd. has first-class equipment and process, and an intelligent production model. With an operational philosophy of "solidarity, entrepreneurship, dedication, excellence", the company actively implements its "talent, technology and brand" strategy. Yinlu follows a sustainable development strategy to build an environmentally-friendly, resource-saving enterprise and thereby abides by the country's policies of agricultural industrial management, technological innovation, energy saving, emissions reduction, waste reduction and promoting a recycling economy.

With a foundation of "inheriting traditional Chinese food, delivering delicious, nutritious and convenient product", Yinlu strives to become "the leader in food and beverage industry that is trusted by consumers".