Givaudan is boosting its presence in the Chinese market with a CHF 40m (US$50m) investment in a new fragrance and beauty facility in the country.
The Swiss fragrance company has broken ground on a 30,000sqm site in Guangzhou, Guangdong province, which it called a “landmark” in the company’s ongoing commitment to China.
The move marks “another significant milestone to support its fragrances business growth with local and regional customers in high-growth markets”, Givaudan said in a statement.
The facility will house a creative centre for evaluation, marketing, sales, and application teams, as well as creative perfumers and perfumery analysts.
A highly automated production site will also support the “fast-moving and fragmented expansion” of Givaudan’s fragrance business in the country.
"This groundbreaking is a landmark in our ongoing commitment to China, showcasing our confidence in the market’s potential and our ability to invest for sustainable growth,” said Gilles Andrier, outgoing CEO of Givaudan.
Maurizio Volpi, President Fragrance & Beauty at the company, said: "China continues to play a pivotal role in shaping the future of fragrance and beauty.
“Our new facility in Guangzhou will enhance our creative capabilities, increase our production capacity, and reinforce our competitive edge in the market to support our business performance.”
Givaudan’s new facility is set to be completed in two years and will employ 150 people who currently work at its existing site in the area.
The fragrance and flavour company opened a fine fragrance hub in Shanghai, L’Appartement 125, last year.
The new site is part of Givaudan’s 2030 strategy, which it announced in August.
“Our ambition for 2030 is to drive sustainable growth with our customers,” said Andrier at the time.
“We will achieve this by leveraging our strengths to further build our position as the undisputed leader in our core business of fragrances and flavours, as well as in selected high-value-added adjacencies in alignment with our purpose and our targeted financial profile.”