The manufacturer of the popular probiotic drink Yakult says it’s moving production lines in Shanghai to factories in the rest of the country as it looks to relocate resources and enhance efficiency.
With the establishment of a stable supply system at its factories in Wuxi, Zhejiang Province; and Tianjin City, the closing of the Yakult Shanghai Factory will improve management efficiency in both manufacturing and sales, according to a news release posted on Yakult Honsha’s official Japanese website on December 6.
There is no change to the company’s policy of continuing business in China, bearing business development in mind, and with the aim of maximizing the potential of the Chinese market, it added.
Currently, Yakult fermented dairy drinks are still available at major supermarkets in Shanghai as well as online grocery and on-demand delivery platforms.
Since starting operation in 2006, the Shanghai factory had been one of the Japanese company’s seven production sites in China, with a total production capacity of around 16 million bottles.
Yakult started local production in China at its first domestic factory in Guangzhou, southern Guangdong Province, in 2002 and entered the Shanghai market in 2003.
Also on December 6, it started the dissolution proceedings of Shanghai Yakult Dairy Co Ltd, a wholly-owned subsidiary of Yakult China Ltd, with manufacturing and sales functions, and Yakult China will establish a new Shanghai branch and gradually transfer Shanghai Yakult’s sales department to it.
Shanghai Yakult Dairy Co Ltd was established in August 2004 and had a registered capital of 389 million yen (US$2.56 million) as of September this year.
Yakult (China) Investment Co Ltd, a wholly-owned subsidiary of the parent company Yakult Honsha, remains its headquarters in Shanghai.
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