Nestlé has opened two new production sites in South Africa to support the growth of its business in the region.
The two facilities will enable the company to manufacture Milo and Cheerios breakfast cereals, and Maggi noodles, for the first time in South Africa. The majority of ingredients and packaging materials will be sourced from local farmers and suppliers, the company said.
The investment has created more than 130 permanent jobs, as well as 300 indirect jobs during the sites’ construction phase. The new facilities are located next to the company’s existing coffee creamer factory in the town of Babelegi, in Gauteng province.
Nestlé announced in February 2011 that it planned to invest around R400 million in the production sites to meet growing demand for its products.
The company is also investing an additional R47 million to expand the coffee creamer factory, as well as R37 million to build a new distribution centre nearby.
Commenting on the news, Paul Bulcke, Nestlé’s chief executive officer, said: “We see major potential for our business in South Africa,” said, at the opening ceremony in Babelegi. It has a population of almost 50 million and a growing middle-class with increasing purchasing power.
“This is why we continue to invest heavily to accelerate our growth here. It is a clear illustration of our commitment to this region.”
Nestlé built its first African factory in South Africa in 1927. Today, the company operates 12 production sites and four distribution centres across the country and employs 3,700 full-time, permanent staff.
