UPDATE 1-Pepsi ups China investment, to build new plants

* Says to invest $2.5 bln more in the next 3 yrs

* Says to build 10-12 new plants

May 21 (BestGrowthStock) – PepsiCo Inc (PEP.N: ) said it is planning
to up its investment in China by $2.5 billion over the next
three years, as it sees more growth in the market.

This new investment is apart from the $1 billion the cola
and snack food giant had announced in 2008, and which will be
completed this year.

“This investment reflects very clearly our great confidence
in China and our long-term commitment to this very important,
growing market,” Chief Executive Officer Indra Nooyi said in a
statement.

The new investment will be allocated to a variety of
projects, including new manufacturing facilities, a significant
scaling up ofthe company’s research and development operations,
expanded agricultural development and brand-building
initiatives.

Pepsi, which competes with Coca-Cola Co (KO.N: ) and Dr
Pepper Snapple Group Inc (DPS.N: ), plans to open 10 to 12 new
plants in China to manufacture soft drinks, non-carbonated
beverages and snacks and will install additional production
lines in existing facilities.

“We look forward to continuing to evolve our business in
China and offer Chinese consumers a full portfolio of foods and
beverages,” Nooyi, who is in Shanghai to visit the Shanghai
Expo, added.

Shares of the company had closed at $63.86 Thursday on the
New York Stock Exchange.

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(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by
Prem Udayabhanu)

UPDATE 1-Pepsi ups China investment, to build new plants