2 Sep 2015 14:51

Opening of new PepsiCo factory outside Novosibirsk delayed for year

NOVOSIBIRSK. Sept 2 (Interfax) - Lebedyansky , under the control of PepsiCo Holdings, (part of American PepsiCo) could launch production at a factory in Berdsk, Novosibirsk region, in September 2016, the regional authorities told Interfax.

"Under the business plan, the first phase of the enterprise is expected in September 2016," a member of the government told Interfax.

The first phase of the plant foresees the construction of 700 work spaces, he said.

The range of products which will be produced after the factory starts the first phase launch was not specified, nor the volume of investments.

The materials of the investment project available to Interfax says that the first phase will include a product line of juices.

The overall cost of production will be $70-$100 million. More than 1 billion rubles has already been invested in the project.

"The enterprise will go into full production capacity no later than 2019," the document said.

Currently production buildings have been erected at the construction site with an area of more than 46,000 square meters, and a power building, and a service and utility building. The site is already connected to power and gas grids and is serviced by two underground railways and a road.

It is expected that the plant will be launched on the eve of the 300th anniversary of the city of Berdsk, which will take place in September 2016, the document said.

Interfax was not able to receive comments from PepsiCo Holdings.

Earlier, the minister for economic development of the Novosibirsk region, Olga Molchanova, said that the plant was expected to be launched in the autumn of 2015. The question of launching the plant outside of Novosibirsk was discussed by the regional authorities with company representatives during the St.Petersburg International Economic Forum in June.

There are about 30 PepsiCo Inc factories in Russia, which is currently its second largest market after the United States. The company has a leading position in Russia in carbonated and non-carbonated drink segments, as well as energy drinks and is one of the country's largest industrial processors of potatoes and milk.