The $50 million facility in Hefei, in the eastern province of Anhui, will integrate the company's industrial operations that were originally in both Shanghai and Hefei, according to a report in the China Daily.

The first two phases of the project were completed earlier this year and have started producing personal care products and detergents.

The packaging plant for Lipton tea is currently in construction and is expected to start operating in September 2006.

It will reduce the number of Unilever production plants in China to three from seven currently.

The company's CEO Patrick Cescau said recently that the group is looking to grow its food business in Asia and has sent its two best 'food people' to China.