US consumer healthcare company Kenvue is deepening its roots in Shanghai, with its facilities in the city's Minhang district playing a pivotal role in the company's global strategy.

At Kenvue's integrated research and manufacturing campus in the Minhang Economic and Technological Development Zone, production is running at full speed.

Over 10,000 bottles of Listerine mouthwash are produced daily, shipped not just across China but to overseas markets including Japan. Meanwhile, over-the-counter products such as Tylenol reach as far as Australia and South Africa.

These Shanghai operations are more than just a manufacturing base — they represent a high-efficiency, innovation-driven hub.

The proximity of Kenvue's R&D and manufacturing teams within the same zone has enabled seamless collaboration, where product development and production are tightly integrated.

This setup accelerates time-to-market and enhances responsiveness to consumer demand.

According to Yan Liang in charge of Kenvue China's supply chain, the Minhang factories utilize over 25 Industry 4.0 technologies, from AI-powered demand forecasting engines to AR-assisted maintenance systems.

In recognition of this, the World Economic Forum designated the facilities as "lighthouse factories" in 2023 — an honor reserved for the world’s most advanced smart factories.

The next phase of growth is already underway. In March, Kenvue began expanding its solid-form OTC drug production lines in Shanghai.

Once completed, these new lines are expected to double annual output to 2 billion tablets, transforming the site into a leading Asia-Pacific production center for non-prescription medications.

Gift Arpaporn Samabhandhu, president of Kenvue China, emphasized that the company's long-term success in the country is closely linked with Shanghai's supportive business environment.

"What makes China stand out is not just the size of the market, but the completeness of its innovation and supply chain ecosystem," she said. "In Shanghai, we benefit from world-class infrastructure, responsive local policies, and a highly skilled talent pool."

Kenvue's presence in China spans more than 35 years and includes two R&D centers, four factories, 10 logistics hubs, and around 1,600 employees.

Its product portfolio ranges from pharmaceuticals and health supplements to medical devices and cosmetics, reaching nearly 2 million retail endpoints in the Chinese market.

The decision to further scale operations in Shanghai follows the company's 2023 announcement of a 110 million yuan ($15.34 million) investment to upgrade production facilities across China — underscoring its confidence in the country's market potential and its commitment to local development.

Samabhandhu credited recent initiatives like the "Shanghai business environment optimization 8.0 action plan" as key to building confidence among multinational enterprises.

"Shanghai continues to evolve as a global business destination," she said. "We've seen first-hand how the city listens to companies' needs and turns that into concrete action."

Source: Shanghai Observer