Fast-food restaurant company Yum China has commenced construction on its new $27.97m (RMB183m) Southwest Supply Chain Support Center in Chengdu.

Claimed to be Yum China’s first greenfield project, the new facility will further enhance the firm’s supply chain capabilities and cold chain logistics services in the south-west part of the country.

It will combine integrated supply chain services, Internet of Things (IoT) technology, big data platforms and high-quality cold chain logistics facilities.

The IoT technology will allow real-time monitoring of products, as well as their ambient temperature, in in-transit vehicles across the country.

Furthermore, the new centre will support the rapid development of Yum China, which had 25 logistics centres and seven consolidation centres serving more than 1,500 cities as of last year-end.

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The Southwest Supply Chain Support Center will cover approximately 34,000m² and is expected to commence operations by the middle of next year.

Yum China CEO Joey Wat said: “From the opening of the first KFC store in 1987 to over 10,000 stores in more than 1,500 cities today, a world-class smart, efficient and agile supply chain has always been essential to our growth.

“The pandemic in 2020 reinforced Yum China’s determination to further invest in our supply chain infrastructure to better respond to external challenges.

“Looking forward, Yum China aims to create a stronger and more agile supply chain network to support the company’s long-term growth, allowing us to reach the goal of 20,000 stores even faster.”

The company also intends to invest in digital, logistics and other operational infrastructure, while working together with partners to build an industry-leading supply chain.