Louis Dreyfus Company (LDC) and China-based coffee chain operator Luckin Coffee have started the construction of a joint venture coffee roasting plant in Xiamen, China.
According to a statement from LDC, the new roasting plant will have an annual production capacity of 30,000 tonnes, and should begin production in mid-2021.
The plant will reportedly be equipped with environmentally-friendly technology for coffee cleaning and roasting, including exhaust air cleaning and smoke elimination technology for the roaster.
LDC also claimed that the production capacity at the plant is expected to be expanded to 40,000 tonnes in a second phase of construction.
Michael Gelchie, LDC’s chief operating officer said: “We are pleased to be advancing in our alliance with Luckin, which has proved highly successful in developing a broad customer base in the Chinese coffee market, through the use of cutting edge technology and an innovative business model.
“Our strategic partnership will continue to strengthen LDC’s business presence in China, enabling us to develop further downstream. This joint venture will also enable a more robust, transparent and sustainable coffee supply chain, to provide great tasting, high quality and convenient coffee to Chinese consumers.”
Jinyi Guo, Luckin Coffee senior vice-president, added: “LDC is among the world’s largest merchandizers of green coffee beans, with a diverse product and regional portfolio. This is in line with Luckin’s focus on high-quality coffee beans and diversified product flavours to meet consumer needs.
“Through this coffee roasting joint venture, Luckin extends upstream closer to the raw materials and production, giving greater product quality control and enhancing the ability to offer better products and services to consumers, together with a better coffee experience.”
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