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Starbucks Will Open Its Largest-Ever Coffee Roasting Facility

By Daniel B. Kline - Mar 13, 2020 at 9:24AM

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The company has pledged $130 million to the project.

Starbucks (SBUX -0.55%) plans to open its largest-ever coffee roasting facility in 2022. The project, which will be located in China, will cost approximately $130 million.

That will make the facility the company's largest investment outside the United States. It will include a roasting plant, warehouse, and distribution center.

A large roaster full of coffee beans.

Starbucks is opening a $130 million roasting facility in China. Image source: Starbucks.

Why is Starbucks doing this?

The company said the new roasting facility would "further drive smart and sustainable coffee manufacturing in China." It will serve the more than 6,000 stores the coffee chain plans to have in China by 2022.

Starbucks made a deep commitment to sustainability in January. That includes everything from developing recyclable cups to making sure its coffee supply is sustainable, and reducing the company's impact on the environment.

The new roasting facility in China "will incorporate advancements in sustainable manufacturing, smart supply chain innovation, and technology to support the aspiration to deliver the most energy- and water-efficient roasting operations for Starbucks in the world, while minimizing waste," according to a press release. 

Starbucks also noted that the roasting plant facility "will be designed with the intent to apply for U.S. Green Building Council LEED Platinum certification, as well as China's Three Star Green Building standards."

Starbucks goes green

It's not just that Starbucks has decided to open a roasting facility in China -- that's a move that simply makes sense given its store count in the country -- it's how it's doing it. The company has committed to environmental sustainability and it's actually delivering on it. That's something that should make shareholders and customers feel good about the brand.

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