New industrial park linchpin of McDonald's expansion in China's heartland

Ti Gong

McDonald’s has broken ground on a 1.5-billion-yuan (US$221 million) smart supply chain industrial park in Hubei Province. 

By jointly investing with suppliers — including Tyson, Bimbo, New HAVI, Zi Dan and commercial property developer China Fortune Land Development — the company will leverage the industrial park to deliver products to its vast consumer base in China's midwestern region. 

"We will continue to increase investment in concert with our suppliers," said McDonald's China CEO Phyllis Cheung. "The smart industrial park is a clear example of McDonald’s innovative approach to accelerating its growth in China."

The new industrial park is expected to be operational in 2023, and will enhance the efficiency of McDonald's existing supply network in China's midwest.  

The company has opened more than 450 new restaurants in China this year despite short-term disruptions due to the pandemic.

The global fast-food chain plans to add 400 new restaurants in China's midwest by 2023, adding to the 600 that currently exist, and views the new industrial park as an essential part of its regional expansion plan. 

The 300,000-square-meter park will include a full supply chain consisting of food production, green packaging and cold-chain logistics, with an estimated annual production value of 1.5 billion yuan.