Swiss foods major, Nestle SA said it will invest about USD30 million in an infant plant located in Vologda, Russia.
Netle said it has laid the foundation stone for its first infant formula plant in Russia. The investment of CHF 30 million (RUB 1.8 billion) means Nestlé can offer a greater variety of infant nutrition to consumers.
The plant will be part of the existing Vologda site, where Nestlé has successfully operated for 14 years. It will strengthen Nestlé’s leading position in the Russian infant formula market, and support export to neighboring 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, petcare, infant nutrition and bottled water.
The factory will be operational by 2019. It will use proven state of the art equipment to meet the highest quality standards. It will also apply Nestlé’s principles on reducing environmental impact, aiming for zero waste.
In the last 20 years, Nestlé Russia has invested around CHF 2 billion into the development of local production. The company owns 8 factories in Russia.