(Yicai Global) April 28 -- Nestlé is to begin producing Gerber purées in China and build the first such plant in the Asia-Pacific region to meet surging demand in the country for high-quality organic baby foods.

The Swiss food and beverage giant will construct a Product Innovation Center and production lines for its Gerber purees in Qingdao, northeastern Shandong province, the Vevey-based firm’s China unit said yesterday. No mention was made of investment amounts or timetable.

Once complete, the new factory will be able to produce 48 million jars of puree a year. At present, all Gerber purées in China are imported.

There is huge room for growth in the country’s food purée market, Nestlé China said. The category still lags behind infant formula and other baby supplementary foods is expected to realize 20 percent compound growth this year, it added, citing SmartPath and Nielsen data.

Nestlé already has a factory in Qingdao, which it built in 1994, that produces coffees, condensed milk and baby foods. It has a Product Innovation Center there for developing instant coffees, liquid daily products and other beverages.

Over 90 percent of Nestlé products sold in China, its second largest market in the world, are produced locally. The Swiss giant runs 23 factories across the country, three research and development centers in Beijing, Shenzhen and Dongguan in southern Guangdong province. It also has five innovation centers in Shanghai, Qingdao, Tianjin near Beijing, Taizhou in southeastern Zhejiang province and Harbin in northeastern Heilongjiang province.

Editor: Kim Taylor