Beyond Meat (NASDAQ:BYND) rose 3.6% in premarket trading Wednesday on optimism that the company’s new unit in China will help it serve more customers and more quickly in the region.
Beyond Meat’s shares are 37% below their 52-week high of $220.8, falling back after the company reported losses that ballooned to $25.1 million in the fourth quarter of 2020 from a $500,000 loss in the same period in 2019.
The manufacturing unit near Shanghai is its first outside the U.S.
The plant will also help the company improve its cost structure and make its operations sustainable.
In order to meet China’s growing demand for plant-based meat, the facility will produce range of plant-based pork, beef and poultry products.
With a focus on long-term growth and expanding existing retail and foodservice business, the facility will also feature R&D capabilities for creating new products and supporting the company’s local strategic partners.
The company said it will also open its first owned manufacturing facility in Europe this year.
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