Herbalife Plans Expansion of Manufacturing Capabilities in China
July 31 2014 - 8:30AM
Business Wire
Nutrition company to create state-of-the-art
manufacturing facility in Nanjing, Jiangsu province
Herbalife Ltd. (NYSE:HLF), a leading global nutrition company,
today announced plans to expand its manufacturing capabilities in
China, as it looks to increase its capacity in line with
anticipated growth in this strategically important market. This
would add to Herbalife’s existing manufacturing facilities in
Suzhou, and its botanical extraction plant in Changsha.
Herbalife has identified an existing, newly built facility in
Jiangning High-tech Industry Park (JHIP), Nanjing as the location
for its newest manufacturing facility, due to the unique
environment it provides for companies operating in the life science
industries, as well as the relative speed to operation in having
only to renovate an existing facility. JHIP brings together
companies from across the entire industry – research and
development; incubation; small- and large-scale manufacturing; and
marketing – to create and foster innovation and intellectual
collaboration. Herbalife will invest up to $40MM USD in a first
phase of development, to bring the facility up to the highest
operating standards. This first phase is expected to be complete
and the facility operational by the end of 2015, with the potential
for a second phase of development, given the size and flexibility
of the facility. This new facility will ultimately provide up to
65% of the company's total product requirements in China.
Richard Goudis, chief operating officer, Herbalife said, “We are
experiencing steady and sustainable growth in China and it is
important that our infrastructure is robust enough to meet the
demand we are seeing now, and expect to see in the future. We have
been impressed with the support from officials in Jiangning, and we
are extremely encouraged by the positive discussions we have had
with senior provincial, state, city and park officials, who are
excited for us to increase our investments and presence in the
region.”
Herbalife received its first direct-selling license in China in
March 2007 and now has licenses for the company to conduct its
direct-selling business in 25 provinces, municipalities or
autonomous regions. The Herbalife Innovation and Manufacturing
facility in Suzhou was opened in 2009 and was the company's first
owned manufacturing facility anywhere in the world. The botanical
extraction facility in Changsha, Hunan province came into full
operation in 2013.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that
sells weight-management, nutrition and personal care products
intended to support a healthy lifestyle. Herbalife products are
sold in more than 90 countries to and through a network of
independent members. The Company supports the Herbalife Family
Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife's website contains a significant
amount of financial and other information about the company at
http://ir.Herbalife.com. The company encourages investors to visit
its website from time to time, as information is updated and new
information is posted.
FORWARD-LOOKING STATEMENTS
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, such
as those disclosed or incorporated by reference in our filings with
the Securities and Exchange Commission. Important factors that
could cause our actual results, performance and achievements, or
industry results to differ materially from estimates or projections
contained in our forward-looking statements include, among others,
the following:
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- changing consumer preferences and
demands;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- the competitive nature of our
business;
- regulatory matters governing our
products, including potential governmental or regulatory actions
concerning the safety or efficacy of our products and network
marketing program, including the direct selling market in which we
operate;
- legal challenges to our network
marketing program;
- risks associated with operating
internationally and the effect of economic factors, including
foreign exchange, inflation, disruptions or conflicts with our
third party importers, pricing and currency devaluation risks,
especially in countries such as Venezuela;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- uncertainties relating to
interpretation and enforcement of legislation in China governing
direct selling;
- uncertainties relating to the
interpretation, enforcement or amendment of legislation in India
governing direct selling;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese economy,
Chinese legal system or Chinese governmental policies;
- our dependence on increased penetration
of existing markets;
- contractual limitations on our ability
to expand our business;
- our reliance on our information
technology infrastructure and outside manufacturers;
- the sufficiency of trademarks and other
intellectual property rights;
- product concentration;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares.
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
Herbalife Ltd.Julian CacchioliVP, Worldwide Corp.
Communications213-745-0513orAmy GreeneSVP, Investor, Government and
Corporate Relations213-745-0474
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