Nestlé drives growth in Europe with a new CHF 73 million factory in Russia

Nestlé is continuing to boost growth in Europe by opening a new CHF 73 million (about 2.6 billion roubles) Maggi factory in Russia.

The facility, in Vyazniki in the region of Vladimir, is set to produce about 30,000 tonnes of Maggi products including seasonings, sauces, instant soups, bouillons and purees each year, which will be distributed across Russia and exported to other Commonwealth of Independent States (CIS) countries.

The company has also increased employment in the area by creating jobs for more than 600 people.

The factory opening follows the company’s announcements earlier this year that will invest CHF 93 million in a new factory and distribution centre in Poland, and more than CHF 29 million to strengthen its supply chain in Russia.

They are the latest in a series of investments Nestlé has made in Europe over the past few years. These include Nestlé’s biggest ever investment in the continent of EUR 220 million in its Nescafé Dolce Gusto site in Germany.

New chapter

“Nestlé has confirmed its long-term commitment to Russia and its consumers by continuing to invest in the development of its production capacities, and introducing advanced technologies in its food production,” said Laurent Freixe, Nestlé’s Head of Zone Europe at the opening ceremony in Vyazniki.

“With this new factory, Nestlé is opening a new chapter for the Maggi business and is setting a new standard for technology in culinary production in Russia,” he added.

Svetlana Orlova, Governor of the Vladimir region, and Pierre Helg, Ambassador of Switzerland in the Russian Federation also attended the inauguration event.

Meet growing demand

The new factory in Vyazniki is Nestlé’s 11th production facility in Russia.

Aiming to meet the growing demand for Maggi products in the country, the first phase of operations at the site began with the filling and packing of Maggi culinary products in 2012.

Other Nestlé products manufactured in the country such as ice cream, coffee and confectionery have continued to deliver strong growth in Russia.

The company also offers chocolate, infant cereals, and culinary product brands to its Russian consumers.

To date, Nestlé has invested more than 1.5 billion US dollars (about CHF 1.3 billion) in its manufacturing and distribution facilities in Russia over the past 17 years.