Starbucks Coffee Company is planning to build a roasting facility in China, with an investment of approximately $130m.
The new facility, which is part of the company’s Coffee Innovation Park (CIP), is expected to be Starbucks’ largest manufacturing investment outside of the US and first in Asia.
The CIP will feature a roasting plant, warehouse and distribution centre and is expected to help Starbucks advance sustainable manufacturing and smart supply chain management.
The roasting plant facility will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support energy- and water-efficient roasting operations.
The development is expected to further boost Starbucks’ commitment to strengthen the speciality coffee industry in China. Starbucks is planning to operate 6,000 stores in the country by 2022.
Starbucks China chairman and CEO Belinda Wong said: “Starbucks has spent the past 20 years sharing its passion for coffee across China and helping to build a leading industry that makes us all proud.
“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.”
Starbucks president and CEO Kevin Johnson said: “We recently announced a bold multi-decade aspiration to become a planet positive company. A company that gives more than we take from the planet.
“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.”
Starbucks plans to commence construction on the new CIP later this year in the city of Kunshan.
The new roasting facility will be designed to meet the requirements of U.S. Green Building Council LEED Platinum certification and China’s Three Star Green Building standards.
The new facility, which will source coffees from China and around the world directly from origin, will be able to process, roast, pack and distribute the products.
Starbucks plans to expand business in China with a new roasting facility. (Credit: Starbucks Corporation)