Starbucks China has officially opened its Coffee Innovation Park (CIP) located in Kunshan, a city near Shanghai.

The company asserts that this is the world’s most energy-efficient and environmentally sustainable coffee production and distribution facility.

Spanning 80,000 square meters, the CIP includes a roasting plant, an integrated distribution center (IDC), and an engaging experience center.

Starbucks has allocated around 1.5 billion yuan (equivalent to $220 million), marking its most significant investment outside of the United States.

In this facility, Starbucks will import Arabica green coffee beans for purposes such as roasting, packaging, storage, and distribution. Additionally, the site will serve as a platform for showcasing the entire ‘bean-to-cup’ coffee journey to visitors and providing training opportunities.

The newly established center will serve as the primary supplier for all Starbucks outlets in China, employing environmentally friendly methods to blend and roast coffee beans sourced from over 30 countries across the globe, including China.

The coffee company announced its commitment to accelerating production innovation, allowing for the creation of high-quality, locally tailored coffee products. The CIP will leverage automation technologies to oversee more than 90% of its production volume.

The site has incorporated a 34-meter-high fully automated storage and retrieval system, allowing the center to conserve space equivalent to six times that of a standard Starbucks warehouse.

Furthermore, over 26,000 square meters of solar panels will generate energy to fulfill nearly 20% of the center’s power needs, and an impressive 90% of the facility’s waste will be recycled each year.

Starbucks CEO Laxman Narasimhan said, “As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks. The Coffee Innovation Park highlights Starbucks’s foresight in elevating the supply chain through digitalisation and advancing our sustainability agenda, enhancing our unique competitive advantage as we accelerate our global growth.

“I couldn’t be prouder of the China team’s visionary thinking. As Starbucks’s largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the China market.”