Fourth Nestle factory in Ukraine to be launched in Q4 2024

MOSCOW. Aug 15 (Interfax) - Food and beverage giant Nestle is planning to launch a new factory in Smoligov in Ukraine's Volyn region in the fourth quarter of 2024, having invested $45 million in its construction, Ukrainian media reported, citing a statement of the company's office in Ukraine.

"The new factory will be part of the hub to produce cookery and manufacture products, in particular, for export to the European Union countries [...]. Its opening is scheduled for the fourth quarter of this year to mark the 30th anniversary of Nestle's operations in Ukraine," the statement said.

The company completed some of the construction work at the factory, installed equipment and continues to expand its green electricity generation capacity in the first half of 2024, it said. In particular, a solar farm with a capacity of 500 kW has been built, and there are plans to add another 700 kW in the near future, after which solar farms will be able to provide 18% of the factory's electricity needs.

It is currently hiring employees for the new factory, with over 100 people already hired and the same number of vacancies open. A total of 300 jobs have already been created, with more to be added after the factory opens.

The company continues to invest in its existing factories in Ukraine. It maintained sales growth in Ukraine in the first half of 2024, focusing its efforts on adapting to the growing needs of consumers in basic food products. Nestle restructured its product portfolio in Ukraine and adjusted the production plans of its factories to meet demand.

At the same time, Nestle in Ukraine increased its exports to European countries 30% in 2023. With the opening of the new factory, there are plans to boost exports to the EU and thus support the process of European integration of Ukraine's food industry.

Nestle in Ukraine has invested over $100 million in the Ukrainian economy over the past ten years, it said.

"The company will continue to invest in its production facilities in Ukraine and support 5,500 Ukrainian employees," Nestle in Ukraine said.

Nestle is one of the world's largest food and beverage companies, with presence in 187 countries. It offers a wide range of products and services for families and pets. It has more than 2,000 trademarks.

Nestle launched its operations in Ukraine in 1994 with the opening of its representative office. It acquired a controlling stake in the Lvov-based Confectionery Factory Svitoch in 1998 and it has owned 100% of the company since 2018. Nestle Ukraine was founded in Kiev in May 2003, and in late 2018 Nestle acquired 100% of Volynholding.

In 2010, Nestle SA acquired Technocom in Kharkov, a manufacturer of instant food under the brand name Mivina. Nestle Business Service (NBS Europe), which is one of seven Nestle service centers in the world and provides support services to Nestle offices in more than 40 countries, was established in Lvov in 2012.

Nestle's business in Ukraine is in the following areas: coffee and beverages, confectionery, cookery (cold sauces, dressings, soups, and instant foods), baby and special food, ready-to-eat breakfasts, and pet food.