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Nestle Investing SFr150m in Emerging African Markets

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Nestle Investing SFr150m in Emerging African Markets

Nestle Investing SFr150m in Emerging African Markets
July 05
14:21 2010

In line with its strategy of expanding in emerging regions of the world, Nestle will invest SFr150m (Eur110m) in the Equatorial African Region (EAR) over the next three years by building new factories in Angola, the Democratic Republic of Congo (DRC) and Mozambique, while also expanding existing factories. The world’s largest food group will also increase its distribution capacity in the region by opening 13 new distribution facilities and more than double its work force by creating 750 new jobs by 2012.

“Nestle is committed to unlock the business opportunities and to promote growth in Equatorial Africa. With 400 million people and an emerging middle-class with rising purchasing power, this region has major potential for Nestle,” explains Paul Bulcke, chief executive of Nestle. “By opening new factories in the region, we are closer to our consumers and can better adapt our products to their taste and nutritional needs.”

This new investment reaffirms Nestle’s commitment to the EAR which includes a SFr40m investment in the Democratic Republic of Congo (DRC). The Swiss group will build a new factory in the Congolese capital Kinshasa, which is earmarked to produce culinary and coffee well-known brands including Maggi and Nescafé 3-in-1. Other products offered under the dairy, beverages and some coffee categories will be tailored to respond to local market needs. Currently operating a distribution centre in Kinshasa since September 2009, Nestle will expand the total number of employees to 300 by 2012.

Paul Bulcke, chief executive of Nestle.

Nestle has also committed an investment of SFr30m to build a new factory and distribution centre in Beira, Mozambique. The factory, which will support the increasing demand in Mozambique and neighbouring countries for Nestle products including culinary, coffee and other beverages, will create over 260 new jobs within three years.

In Angola, Nestle will invest SFr25m in a new factory which is expected to bring the total number of employees to 145 by 2012. Currently, Nestlé sources products for the Angolan market from other markets such as Portugal and Brazil. Angola is important for Nestle, as an emerging market with a strong economy and a growing purchasing power.

While in Kenya, Nestle is investing SFr30m in the expansion of its Nairobi factory including a new production line to support its newly-launched food service division, Nestle Professional. The factory will supply Kenya, Uganda, Tanzania, Rwanda, Burundi, Eastern Democratic Republic of Congo, Malawi and Zambia.

In addition, in Zimbabwe, Nestle is investing in the expansion and upgrade of its Harare factory at a cost of SFr25m. This is expected to boost its production capacity and help supply other regional markets such as Zambia and Mozambique.

Nestle EAR was set up in 2008 and oversees the Nestle operations in 20 countries including Kenya, Angola, Burundi, Comoros, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Madagascar, Mauritius, Mozambique, Malawi, Republic of Congo, Rwanda, Seychelles, Somalia, Tanzania, Uganda, Zambia, and Zimbabwe.

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