(Yicai Global) Aug. 3 -- PepsiCo plans to expand its Shanghai food factory to lift production of Lay's brand potato chips in order to satisfy increasing demand among Chinese consumers for the popular snacks.

PepsiCo will invest almost USD100 million to add a new production line at its Songjiang plant, introduce advanced packaging and storage technologies and modernize it across the board, the New York-based company said yesterday, state news agency Xinhua reported.The factory, which dates to 1998, mainly makes Lay's potato chips.

China's appetite for snack foods is growing. The market is already worth USD6.79 billion and is forecast to grow 7 percent a year through 2021, according to a report by Statista.The country serves as a growth driver for PepsiCo, which has promoted its food business in the market for the last 20 years and achieved sound performance.

PepsiCo will continue its intensive development in China and contribute more to its sustainable development, said Ram Krishnan, president and chief executive of the firm's Greater China region.

A two-story packaging workshop and warehouse will be set up amid the Shanghai factory's planned expansion. The factory will also adopt advanced automated packaging and warehouse technologies. The expansion will create nearly 370 jobs and provide thousands of indirect employment opportunities in neighboring areas, a PepsiCo manager said.

PepsiCo had annual revenue of USD63.5 billion last year, a rise of almost 1.2 percent, while net profit was a mere USD4.9 billion, down over 23 percent. Frito-Lay, its snacks division responsible for producing, marketing and selling potato and corn chips, posted a 5 percent revenue gain last year.

Editor: Ben Armour