Nestlé will not shut down plants in China due to rising labor costs, said Roland Decorvet, chairman for Nestlé Greater China, the China Economic Net reported Monday.

Decorvet said that instead of shutting down plants in coastal cities, Nestlé plans to build new plants in China's central and western regions, because the consumption in these areas continues to increase while plants in coastal areas face great labor cost pressure.

According to him, a big plant is under construction in Zhumadian, Central China's Henan Province for Hsu Fu Chi, a Chinese confectionery brand acquired by Nestlé in July 2011. It also plans to build two plants in Southwest China's Sichuan Province in the next two years.

Global Times