Nestlé will invest CHF 30 million ($30.8 million) to build a new infant formula plant in Russia to offer more variety to consumers.
The facility will be part of the existing Vologda site, where Nestlé has operated for 14 years. The move sees Nestlé strengthen its position in the Russian infant formula market, as well as support export to neighbouring countries.
The investment is in line with Nestlé’s strategy to increasingly focus capital spending on the high-growth food and beverage categories of coffee, infant nutrition and bottled water.
In total, Nestlé owns eight factories in Russia and it is estimated that the new infant formula site will be fully operational by 2019.
Nestlé Russia CEO Martial Rolland said: “This new factory will allow us to strengthen our leading position in the Russian infant formula market by developing our ability to supply both the domestic and the export markets.”
Nestlé baby food factory manager Eddy Dauphin added that the new site will allow the company to meet consumer demand in the region.
“Today we are happy to announce that we start construction of the infant formula site, which will allow us to double the capacity of our local production from 2019 onwards,” he said.
In the last 20 years, Nestlé Russia has invested about $2 billion into the development of local production. The company claims that about 70% of raw materials and 90% of packaging used in its products are of local origin.
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