Haleon to invest £65 million in Shanghai oral care plant as China demand grows

Haleon's oral health business in China has grown about 15% annually in the past three years.

Photo from Jiemian News

Photo from Jiemian News

mby HUANG Hua

Haleon, a British consumer health company spun off from GSK (GlaxoSmithKline), said on March 13 it will invest about £65 million (US$87 million) to build an oral care manufacturing plant in Shanghai's Lingang area, expanding its production footprint in one of the world's fastest-growing oral health markets.

The plant will mainly produce products under the Sensodyne and parodontax brands for the Chinese market.

GU Haiying, general manager of Haleon for mainland China and Hong Kong, told Jiemian News the project will be the company's first production base in Shanghai.

Chief Executive Brian McNamara told Jiemian News that construction of the Lingang plant will begin soon, with the company aiming to complete the project by the end of 2027. The facility is expected to become one of Haleon's most advanced oral care manufacturing sites worldwide.

McNamara called Shanghai a "fantastic location," adding that the new facility will primarily supply the Chinese market, which the company sees as a key driver of future growth in Asia.

Haleon already operates manufacturing plants in Tianjin and Suzhou, but needs additional capacity to support growth. Over the past three years, its oral health business in China has grown at a compound annual rate of about 15%.

McNamara said China is critical for Haleon, adding that the country is both a core market and a source of long-term growth, innovation and partnerships.

He said parodontax has strong growth potential in China, with Haleon planning to expand the brand to 30 cities by 2027, reaching about 250 million consumers.

Sensodyne, which targets tooth sensitivity, entered the Chinese market in 2008 and has become one of the country's most widely recognized toothpaste brands.

Parodontax, a gum-care brand, was relaunched in mainland China in September 2024 with five toothpaste products and one mouthwash.

The gum-care segment is the largest category in China's toothpaste market and significantly larger than the niche sensitive-teeth segment. Within this market, parodontax competes directly with Yunnan Baiyao, which has long ranked as China's top domestic toothpaste brand by sales.

Globally, parodontax has delivered double-digit growth in recent years, according to Haleon's latest annual results, with expanded distribution in China helping drive the increase.

McNamara said China has one of the fastest-growing oral health markets globally, with the gum-health segment worth about £860 million annually. Executives say demand is being supported by China's ageing population and rising interest in preventive healthcare.

Gu said Haleon has also adjusted products for Chinese consumer preferences while maintaining the brand's global formulation.

Oral care has become a key driver of Haleon's growth in China.

In 2025, Haleon reported £11.03 billion in revenue, down 1.8% year on year, while adjusted operating profit rose 10.5% to £2.526 billion. The company's oral health segment generated £3.461 billion, up 7.9%, while revenue in the Asia-Pacific region reached £2.572 billion, rising 5.2%.

The company said strong online sales in China, along with stable consumer confidence and brand loyalty, supported growth in the region.