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PepsiCo to build new $160m snack plant in Kazakhstan
Phoebe Fraser

Phoebe Fraser

17 June 2024

PepsiCo to build new $160m snack plant in Kazakhstan

PepsiCo has unveiled plans to invest $160 million into a new salty snacks plant in the Almaty region of Kazakhstan.


The site will manufacture PepsiCo products such as Lay's crisps, according to an official statement released by Kazakhstan’s Prime Minister, Olzhas Bektenov.


In the statement, Bektenov said that the localisation of production and transfer of innovative technologies will facilitate a move towards increased processing of Kazakhstani agricultural products.


The facility is expected to be completed by 2026 and once open, will reach a production capacity of up to 16,000 tonnes of snack products per year. PepsiCo expects to boost this to 17,000 tonnes from 2027. Finished products will be supplied to the Central Asian market and beyond.


PepsiCo's Manzini and Kazakhstan's Prime Minister Bektenov.
PepsiCo's Manzini and Kazakhstan's Prime Minister Bektenov (L-R)

David Manzini, the president of PepsiCo's business in Russia and the Commonwealth of Independent States (CIS), met with Prime Minister Bektenov to discuss the new site. Manzani said that PepsiCo intends to source most of its materials for the new site from local businesses and that the company is already working with Kazakhstani farmers to test batch potatoes, with plans to purchase up to 50,000-66,000 tonnes of potatoes in 2026-2030 with further increase.


The facility will feature sustainable technology – 100% of waste from the new plant will be recycled and utilised, for example. In the future, PepsiCo plans to make further investments in the modernisation of the plant to produce a wider range of products.


Bektenov said: "The US is one of the most important investment partners of Kazakhstan. Kazakhstan is interested in long-term co-operation with such strategic investors as PepsiCo. We are committed to honouring our investment protection obligations and are ready to provide the necessary support.”


Around 1,000 people will be employed during the site’s construction phase and will create a further 350 skilled jobs for employees at the facility.


This is the latest in a number of PepsiCo investments in the snacking sector. In May, the food giant unveiled an £8 million investment in its Pipers Crisps manufacturing site in the UK, and in April the company invested NR 12.66 billion (approx. $151.7 million) to build a new flavour manufacturing facility in Ujjain, Madhya Pradesh, India.


#PepsiCo #Kazakhstan

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