Reckitt Enhances US and China Supply Chains in Response to Growing Trade Tensions

Key Takeaways

Reckitt is investing $190 million in a new factory in North Carolina for Mucinex production, reducing US imports.
A 300 million yuan (approximately $40.9 million) R&D center is being established in Shanghai to cater to local market needs.
The strategy aims to strengthen supply chains amid rising trade tensions and potential tariffs on imports from China.

Reckitt’s Local Production Strategy

Reckitt is enhancing its local manufacturing capabilities in the U.S. and China to minimize dependence on imported goods and secure its supply chains against geopolitical disruptions. The company has announced significant investments, including a $190 million factory in North Carolina dedicated to the production of Mucinex, which is set to be operational by 2027. This new facility will allow Reckitt to produce Mucinex tablets and liquids domestically, decreasing reliance on imports to just 25% of its local sales.

In China, Reckitt is expanding its operations at the Taicang factory to include the production of condoms starting in 2026. Furthermore, the company is launching a new R&D center in Shanghai focused on developing products targeted specifically at the local market. Currently, a substantial 80% of Reckitt’s products sold in China are manufactured locally, which puts the company in a favorable position to respond effectively to ongoing consumer demands, regardless of trade uncertainties.

This shift in strategy comes as the U.S. government considers implementing protectionist policies, which could include tariffs reaching as high as 60% on imports from China. In light of these potential trade barriers, Reckitt’s proactive stance is designed to diversify its sources of production. By ensuring flexibility in manufacturing, the company aims to mitigate risks associated with over-reliance on any single source for its supply needs.

Reckitt’s investments underscore a broader trend among multinational corporations evaluating their supply chains amid rising global trade tensions. By reinforcing local production capabilities, Reckitt not only addresses potential supply disruptions but also aligns more closely with evolving consumer preferences in both the U.S. and Chinese markets.

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