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Unilever's HQ homecoming

(China Daily)
Updated: 2007-02-12 09:36

SHANGHAI:Unilever, the world's second largest consumer goods producer, opened its new China headquarters in the city on February 2, becoming the latest Fortune 500 company to build offices in this economic hub.

Vice-president of Unilever China Zeng Xiwen, however, believes that the construction of the multi-billion yuan complex is simply the last leg of a long homecoming journey for the consumer goods giant.

"When Unilever came to China in 1929, we had our own headquarter building in Shanghai," he says.

But when the company reentered China in 1986, it leased properties for its offices rather than building its own.

"Now we have settled down again in our own home," says Zeng.

While the consumer goods giant recently sold part of its global headquarters in London in order to cut costs, the decision to build its own office in China reflects "our long-term commitment to the Chinese market," says Zeng.

Located in Shanghai's Hongqiao International Business Park, the new headquarters will cover 46,000 square meters, becoming Unilever's third largest office.

The project's first phase calls for the construction of a 22,000-square-meter office area accommodating 1,150 employees.

Scheduled for completion next year, the second phase calls for the construction of 24,000 square meters of research and development (R&D) facilities. The entire project is expected to cost up to $100 million, according to Zeng.

"The huge investment highlights the important position China occupies in Unilever's overall global strategy," he says.

In addition to its historical connections, Shanghai's geographical and economic position in the country and its favorable policy incentives also played a major role in Unilever's decision to establish its headquarters in the city, adds Zeng.