The International Finance Corporation, the private lending arm of the World Bank, is considering an equity investment of $25 million in China’s Suzhou Jiahe Foods Industry Co Ltd to fuel its expansion plans, according to its disclosure.
Jiahe, located in Suzhou, Jiangsu province, is China’s leading manufacturer of non-dairy creamer, a key ingredient in packaged beverages, fresh bakery products and processed food. The company is wholly owned by Mr. Liu together with his wife (Tang Zhengqing) and sister-in-law (Tang Zhengming). The proposed IFC investment will enable the company to expand its production capacities. The company has outlined an expansion plan with a total project cost estimated to be $82 million.
Jiahe Foods is planning to invest in upgrading its non-dairy creamer production lines and setting up an R&D centre, a freeze-dry coffee facility and a modern warehouse. Upon completion of the project, Jiahe’s capacity will increase from 200,000 tonne per annum (TPA) to 250,000 TPA. All the proposed manufacturing expansions are within its current plant site in Suzhou.
