Nestlé’ is investing EU€26mn in its first infant formula plant in Russia. The plant will be part of the existing Vologda site, where Nestlé’ has operated for 14 years.
Martial Rolland, CEO of Nestlé’ in Russia and Eurasia said, “The factory in Vologda is a strategic plant for Nestlé’ in Russia and CIS, the only factory producing Nestlé infant formula in the Russia and Eurasia region.”
“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”, he added.
The investment is part of Nestlé’s strategy to increasingly focus capital spending on high-growth food and beverage market segments such as coffee, pet care, infant nutrition, and bottled water.
For more than 20 years, Nestlé’ Russia has invested about US$2bn dollars into the development of local production. The company already owns eight factories in Russia and this new addition will be operational by 2019.
The company statement says, “The plant will use state-of-the-art equipment to meet high-quality standards and will also apply Nestlé’s principles on reducing its environmental footprint, aiming for zero waste.”