According to Changzhou Daily, the foundation stone was laid in October 2017 for the largest plant built by Givaudan in the world, with a planned annual production capacity of 38,000 tons of flavors and fragrances.
The production base adopts highly automated advanced dosing technology to meet the highest global standards for daily flavor manufacturing, mainly producing a variety of products such as daily flavors, dental flavors and microencapsulated flavors, and is expected to achieve annual sales revenue of more than 1 billion yuan.
Chihuahua indicated that the total investment of the project is about 100 million Swiss francs, covers an area of 76,000 square meters, is Chihuahua fragrance and beauty division so far in China's largest investment project.
Meanwhile, in line with the Group's sustainable development goals, the new factory is equipped with a variety of energy-saving equipment, and the solar system project, which is expected to be completed by the beginning of 2021, will help the company to achieve 100% renewable energy generation by 2025.
Chilton is a leading manufacturer of flavors and fragrances, with a global market share of approximately 25 percent. Its main business covers the production of edible and daily flavors, and it has 181 branches around the world. Meanwhile, Chihuahua is also the perfume supplier behind many first-tier brands such as Miu Miu, Prada, Dior and so on.
What attracted Chilton to invest more in China is the growing market potential of China.
Prior to this, Chihuahua expanded its edible flavors plant in Nantong, Jiangsu Province, late last year, adding an additional 30 million Swiss francs (RMB 212 million), bringing its total investment in the Nantong plant to 80 million Swiss francs (RMB 569 million).
Underpinning this ongoing series of expansions is the steady growth of Chihuahua's earnings. The epidemic has not dealt a blow to the group, but has grown its confidence to further expand its market share.
According to Chihuahua's H1 2020 financial results, the group's sales reached CHF 3.221 billion, up 4.1% year-on-year. Net profit for the first half of the year realized CHF 413 million, up 8.8% year-on-year. At the same time, the net profit margin increased to 12.8% from 12.3% last year.
In the report, Chilton also set out its "ambition" to double its business by 2030 through its ability to innovate and create happier, healthier lives for consumers.
While investing and building, Chihuahua continues to include the best companies in the industry to solidify its position as an industry leader. In April last year, the Group acquired the cosmetics business unit of AMSilk, a German botanical silk board and supplier, as part of its strategy to expand its active beauty products business.
It followed this up in May with the acquisition of Albert Vieille, which specializes in natural ingredients from aromatic plants, to strengthen its presence in the natural ingredients sector.
It also acquired Fragrance Oils, a British fragrance manufacturer and marketer, in August, and completed the acquisition of Drom, a centuries-old flavor and fragrance company, in September, to further strengthen its position as a leader in perfumery.
Chihuahuaten's continuous accelerated layout in the Chinese market also meets the needs of Chinese consumers. According to the "2020 China Perfume Industry Market Outlook and Investment Research Report" released by the China Business Industry Research Institute, the scale of China's perfume market grew gradually from 2014 to 2018, and it is predicted that the market scale will exceed 40 billion yuan in 2022.
Li Yaling, President of Greater China and Korea, Chihuahua Fragrance & Beauty, commented, "Chihuahua has a fragrance creation center and production plant in Shanghai, and recently acquired a Deloitte fragrance creation center and production plant in Guangzhou, and the completion of a plant in Changzhou has allowed us to further expand our production capacity in China, which has made Chihuahua's presence in China unprecedentedly large. We are now fully prepared to expand our business in China. We are now well positioned to provide our customers in the region with a comprehensive end-to-end solution for the creation, development and production of consumer-favorite everyday fragrances."