Located in in Changzhou, the manufacturing facility will cost EUR21.75m (US$25.3m) and focus on research, development and production of jam ingredients, fruit juice concentrates, fruit and vegetable products and seasonings.
Construction is expected to be completed by the end of 2018, and the facility should become operational by 2019. It will serve customers including Danone, Mengniu, Bright Dairy, and Unilever, the company said.
Agrana is the first European food processing firm to establish a footprint in Changzhou National Hi-Tech District, near Shanghai, which has so far attracted investors from 1,580 companies from 68 countries.
Austria-based Agrana already has 56 fruit, sugar and dairy manufacturing sites across the world. Its global fruit processing operation accounts for 44% of its total revenue.