Reckitt to set up global R&D center in Shanghai

British multinational consumer goods group Reckitt says it will invest over 300 million yuan (US$41.7 million) to set up a global R&D center in Shanghai to strengthen local innovation.

The new site will be in the Caohejing High-Tech Park in Minhang District, covering more than 8000 square meters, and is expected to be operational in 2026 when it will becoming the group's ninth such facility around the globe.

"Establishing this new R&D facility in Shanghai, which is a hub of technology and innovation as well as the commercial center of our China business, will enhance our business through more scientific collaboration, capabilities and talent development, which would ultimately support our longer-term growth ambitions here," said CEO Kris Licht.

It will bring multi-disciplinary research staff under one roof to support the development of all Reckitt brands in China, including Durex, Dettol, Movefree and Finish, allowing it to stay close to its commercial and supply chain operations.

Arjun Purkayastha, the company's senior vice president and managing director of Reckitt China, said the latest incentives in Shanghai to enhance the business environment had been a positive factor for the group to set up the new site and continue long-term investment.

"We're fully confident the business environment would keep improving which could support businesses in the long term," he said in an interview on Tuesday.

"It makes perfect sense for us to locate an integrated R&D site in Shanghai in order to move in accordance with speed of the China market, and ultimately deliver better products for local consumers."

He said the company had seen encouraging signs of consumption recovery in the first half, and it will continue to respond with a more suitable product portfolio to cater to the latest trends, such as higher health and wellness awareness and a growing demand for nutritional supplements.