P&G and Unilever Go Big in China

China has emerged as the newest and potentially the largest batteground between Procter & Gamble and Unilever.

P&G has started construction of a manufacturing plant in Luogang, Guangzhou that is being hailed as one of the largest manufacturing sites in Asia.

The new manufacturing plant is expected to add $490 million of production annually. The first-stage operations are set to come online by the second half of 2013 and will produce a variety of goods including Pampers diapers. The new initiative is a part of the company’s goal to invest as much as $1 billion in China by 2015.

Almost simultaneously with P&G, Unilever has started constructing one of its largest production operations, covering nearly 27 hectares, in the Binhai New Area, a business district in Tianjin. The new plant will make liquid laundry detergent and fabric softeners.

P&G has announced plans to add around 20 manufacturing plants between 2010 and 2015 in countries like Brazil, China, South Africa, Romania and Poland.