Agro Perspectiva

CHF 60 million investment for Nestlé factory in Russia

16.06.2010 11:54 "Agro Perspectiva" (Kyiv) — An investment of CHF 60 million (1.6 billion roubles) for the construction of a new state-of-the-art factory in Russia has been announced today by Nestlé. 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 wide range of culinary products under the Maggi brand. The new plant, which will be the 14th production site under Nestlé Russia, will create 500 new jobs in the district. An agreement was signed at an official ceremony in Vladimir by Stefan De Loecker, CEO of Nestlé Russia, Nikolai Vinogradov, the Governor of the Vladimir region and Lidia Ilyina, acting Head of the Vyazniki district of the Vladimir region. Mr De Loecker said: «We believe in Russia’s huge long-term potential, which is why we are continuing with Nestlé investments into the development of local production facilities. 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.» Mr Vinogradov added: «We are glad to welcome the world’s leading food and beverage manufacturer, Nestlé. The opening of modern factories, utilising the most advanced technologies, contributes to the development of economy of the region and helps increase the quality of life of its citizens.» 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 the growing 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, which will then be fully focused 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 Nestlé factory in Zhukovsky. All permanent staff of Nestlé Kuban ice cream division will continue working at the factory due to the expansion of coffee production in launching its freeze-dry technology in 2011. 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 Vladimir region and the other branches of Nestlé Russia. Over the past 15 years, Nestlé has built up a strong presence in Russia with over 10,000 employees. With double-digit growth rates and sales of around CHF 2 billion in 2009 in Russia, Nestlé is market leader in coffee, chocolate, infant cereals and culinary products.