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McDonald makes investments in central Chinas food supply chain

McDonald's invests in food supply chain in central China

McDonald's makes investments in central China's food supply chain - Supply Chain Tribe by Celerity

The American fast food business McDonald's has joined up with four bakeries and food suppliers, including Tyson Foods and Bimbo, to jointly establish a food supply base in the Hubei Province of central China.

After opening for business on Wednesday, the smart industrial park in Xiaogan City, Hubei, is anticipated to generate two billion packaging items, 30,000 tonnes of meat products, 30 million pastries, and roughly 300 million loaves of bread yearly.

The CEO of McDonald's China, Phyllis Cheung, stated that the company has been operating in China for more than 30 years and that the opening of the smart industrial park for food supply is a significant step in the company's continued expansion into the Chinese market.

According to Cheung, the industrial park will hasten McDonald's localization efforts in central and western China while also increasing the supply efficiency of the company's restaurants.

Over 300,000 square meters make up the Xiaogan industrial park, which was constructed with a 1.5 billion yuan (roughly 206 million US dollars) investment for cold chain logistics, food production, and packaging.

According to Cheung, "the average automation rate for each link in the industrial park exceeds 70 percent." He also mentioned how big data and the Internet of Things have been used to effectively integrate raw materials, manufacturing, and warehousing with cold chain distribution and logistics, allowing for real-time traceability of all process data.

According to Cheung, McDonald's has established more than 6,000 locations in China, making it the company's second-largest and fastest-growing market globally.