Recently, Reckitt is intensifying its efforts to bolster local production in the United States and China, aiming to mitigate reliance on imports and safeguard its supply chain amid rising trade tensions. The company has committed to significant investments, including a US$190 million factory in North Carolina dedicated to Mucinex production and a 300 million yuan (US$40.9 million) research and development (R&D) center in Shanghai.
The North Carolina facility, slated to become operational by 2027, will manufacture Mucinex tablets and liquids domestically, reducing US imports to just 25% of Reckitt’s local sales. Meanwhile, in China, Reckitt is expanding its Taicang factory to commence condom production by 2026. The new Shanghai R&D center will develop products tailored to Chinese consumers, aligning with local preferences and market demands.
Reckitt’s strategy comes as the United States considers implementing protectionist policies, including tariffs of up to 60% on Chinese imports. By diversifying its supply chain and reducing dependency on mono-sourcing, Reckitt aims to enhance its manufacturing agility and resilience.
Currently, 80% of the products Reckitt sells in China are already produced locally, a position that enables the company to navigate trade uncertainties effectively.
