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Haleon eyes growth with new unit in Shanghai

By Zheng Yiran | China Daily | Updated: 2026-03-18 09:38
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Seeing China as not only a key market, but also a place with significant potential for long-term growth, innovation and partnership, Haleon, a British consumer health company, has reiterated its long-term commitment to the country, announcing plans for a new manufacturing facility for oral care products.

Brian McNamara, CEO of Haleon, said: "Every visit reinforces how important China is to Haleon. China is one of Haleon's top strategic markets. It is our second-largest market globally and essential to our ambition to reach 1 billion more consumers by 2030.

"The underlying drivers — an aging population, a rapidly expanding middle-income group, and a rising focus on preventive health — link directly to our purpose: to deliver better everyday health with humanity."

On March 13, Haleon announced a 65 million pounds ($86.5 million) investment to build a new oral health manufacturing plant in Shanghai's Lin-gang Special Area, a fast-growing industrial hub.

The facility will support the expansion of Haleon's oral care portfolio — which includes global brands such as Sensodyne and Parodontax — into China's fast-growing lower-tier cities, where rising incomes, growing awareness of everyday health and a shift toward trusted, branded products are reshaping consumer behavior, according to the company.

"This investment reflects our deep confidence in China and our commitment to making clinically proven oral health solutions more accessible to Chinese consumers. The new facility will strengthen our local supply chain, increase agility and support innovation to deliver everyday health products tailored specifically to Chinese consumers,"McNamara said.

According to Haleon, its China business continued to grow steadily at mid-single digits in 2025, with its oral health portfolio delivering particularly strong momentum.

"Oral health is a major opportunity for China and for Haleon. China is one of the world's fastest-growing oral health markets and the largest globally for gum health at approximately 860 million pounds,"McNamara said.

"Gum health issues remain widespread and professional treatment rates are low. This gap underscores the need for science-backed, accessible solutions," he said.

"We are very much a 'China for China' business. We have three manufacturing plants and one research and development center in China. Eighty-five percent of what we sell in China is produced locally. We also export to 10 other Asian markets. China is already our second-largest market globally, and we see the opportunities for growth," he added.

Chen Jia, an independent financial analyst, said: "For multinational corporations, establishing factories locally is their best choice. China's economy has demonstrated strong resilience and the ability to ensure supply chains. This has greatly enhanced MNCs' confidence to increase investment and build factories in China.

"In addition, when they localize their production, they are closer to consumers and it's easier to make adjustments."

Speaking of China, especially Shanghai's business environment, McNamara said: "I was here a couple of weeks ago with the UK Prime Minister's visit, and we had the opportunity to speak with senior Chinese officials and regulators. My sense is that the Chinese government and regulators are actively leaning in to partner with companies and create a positive atmosphere for investment.

"I think that was one of the reasons we decided to invest here in Shanghai. It made strong business sense, and the infrastructure they are building makes investment easier — for example, the existing shell building where we will establish our manufacturing site. That kind of readiness is quite unique. In many other countries around the world, you would not find that type of opportunity."

Susan Gu, general manager of Haleon Chinese mainland and Hong Kong, said: "In my daily work, I frequently interact with government officials, and I feel both proud and deeply moved. The government officials are highly dedicated to building a strong business environment and supporting enterprises.

"In addition, Shanghai has another important advantage — it is a talent hub with a strong concentration of skilled professionals. The business environment here is supported by policy measures, efficient logistics and distribution systems, and a strong financial ecosystem, particularly in Lingang. Choosing Shanghai enables us to focus more fully on business growth and better health solutions for consumers."

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