Starbucks to build roasting, distribution facility in China
Starbucks Coffee announced on Friday that it will invest US$130 million in China to open a roasting and distribution facility, its largest manufacturing investment outside of the US and its first in Asia.
Construction of the facility, including a roasting plant, warehouse and distribution center will begin later this year in Shanghai's neighboring city Kunshan, Jiangsu Province.
"China is one of our most important markets and The Coffee Innovation Park is an important, strategic investment that has a positive impact on our carbon footprint and supports our long-term sustainability goals,” said Kevin Johnson, president and chief executive officer of Starbucks.
The facility is scheduled to open in 2022 and is set to handle Starbucks' largest roasting capacity outside the US.
Currently it has one roasting facility in Europe and five in the US.
It plans to integrate green coffee bean warehouse management and processing, and set up a highly automated distribution center that will become the heart of Starbucks' distribution network in China.
The project highlights the US company's ambition to further globalize its roasting network and reinforces its strategic focus on the US and China as its two lead growth markets.
"The roasting facilities at the Coffee Innovation Park will set a blueprint for the future of coffee roasting and supply chain management, and further elevate China’s coffee industry, while supporting Starbucks growth in China, with China,” said Belinda Wong, chairman and chief executive officer of Starbucks China.
The coffee retailer has spared no efforts to strengthen the industry with extensive partnerships and retail infrastructure.
It aims to have 6,000 stores by 2022 in China, but new store openings might be deferred to the next fiscal year starting September due to the coronavirus disease outbreak.
