RUSSIA: Nestlé invests $53m in latest Russian expansion
- Nestlé's 14th site in Russia will command US$53m investment
- 500 new jobs at the plant
- 30,000 tonnes of Maggi products to be produced by 2011
Nestlé is to build its 14th production site in Russia following an investment of CHF60m (US$52.7m).
Earmarked for a greenfield site in the Vyazniki district of the Vladimir region - around 300 km east of Moscow - the new factory will produce a range of culinary products under the Maggi brand.
The plant will create 500 new jobs in the district and Stefan De Loecker, CEO of Nestlé Russia, said the company thinks Russia has "huge long-term potential"
"With the new factory in Vladimir region, Nestlé opens a new chapter of Maggi business and sets a new standard for technology in culinary production in Russia," De Loecker said.
After the first phase of construction is completed in the third quarter of 2011, the new plant will produce more than 30,000 tonnes of Maggi products to meet demand for these products in Russia and CIS countries.
Once completed, Nestlé will transfer its culinary production out of its current site located in the town of Zhukovsky, Moscow, to the newly-constructed Vladimir plant. The Zhukovsky plant will then focus on ice-cream production.
The company also plans to transfer its ice-cream production lines from the Nestlé Kuban factory located in Timashevsk, in the Krasnodar region, to the factory in Zhukovsky.
All permanent staff at the Kuban site will continue working at the factory due to the expansion of coffee production there, the company said.
Part of the culinary staff of Zhukovsky factory will be transferred to the ice cream production, while others will be offered other job opportunities at the new plant in the Vladimir region and the other branches of Nestlé Russia.
The Swiss food giant has been insisting recently that it remains committed to driving growth in Russia, despite the challenges that have hit consumption in the market over the past year.
The Russian economy slumped the most on record during 2009, with GDP falling 7.9% as the global economic crisis, the falling price of oil and rising unemployment levels took their toll.
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