Nestlé will also increase its distribution capacity in the region by opening 13 new distribution facilities and more than double its work force by creating 750 new jobs by 2012.
Paul Bulcke, Nestlé CEO, who announced the investment at a press conference in Kenyan capital Nairobi, said: “Nestlé is committed to unlock the business opportunities and to promote growth in Equatorial Africa. With 400 million people and an emerging middle-class with rising purchasing power, this region has major potential for Nestlé.
Frits van Dijk, Nestlé Executive Vice President responsible for Zone Asia, Oceania, Africa and Middle East, who also attended the press conference added: “Our strategy in the region is based on a specific business model that supports local sourcing of raw material, production and distribution of our products. Following this strategy, we recently launched products like Maggi cubes and Nestea, and also re-invigorated and re-launched our Milo brand in the EAR market.”
This new investment reaffirms Nestlé’s commitment to the EAR, which includes a CHF 40m investment in the DRC announced earlier this week. The company will build a new factory in the Congolese capital Kinshasa, which is earmarked to produce culinary and coffee well-known brands including Maggi and Nescafé 3-in-1. Other products offered under the dairy, beverages and some coffee categories will be tailored to respond to local market needs.
Nestlé has also committed an investment of CHF 30m to build a new factory and distribution centre in Beira, Mozambique. The company will also invest CHF 25m in a new factory in Angola. Currently, Nestlé sources products for the Angolan market from other markets such as Portugal and Brazil.
In Kenya, Nestlé is investing CHF 30m in the expansion of its Nairobi factory including a new production line to support its newly-launched food service division, Nestlé Professional. The factory will supply Kenya, Uganda, Tanzania, Rwanda, Burundi, Eastern Democratic Republic of Congo, Malawi and Zambia.
In addition, in Zimbabwe, Nestlé is investing in the expansion and upgrade of its Harare factory at a cost of CHF 25m. This is expected to boost its production capacity and help supply other regional markets such as Zambia and Mozambique.
Source: Nestle SA
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