(Yicai Global) Sept. 11 -- Food and beverage giant Nestle, one of the first multinational corporations to enter China's mainland, will invest a further CNY400 million (USD58.5 million) to upgrade its processing capacity of dairy, grains, beans, fruit and vegetables at its No. 1 Chinese plant.

Nestle will spend half of the money this year on its factory in northern China's Harbin, the Paper reported. Over the past three years, the Vevey-based company has poured CNY300 million into the plant, set up in 1990.

The project should improve Nestle's production of infant formula, baby rice noodles, and functional health foods that boost bone density and immune system responses. By the upgrade, the company should be able to add A2 milk to its portfolio and switch to domestic raw milk for its Nan baby formula.

The investment proves Nestle's great confidence and firm commitment to the Chinese market, said Rashid Qureshi, chief executive of Nestle China. The firm has more than 30 factories in China and almost all of its products sold in the country are made domestically.

The Harbin plant has become a central node in the MNC's China operations as it has a dairy farming training center and since last year, a production line to make popular toddler snacks Nestle Gerber Puffs there.

Editor: Emmi Laine