Nestlé announced its intention to invest CHF 240 million into the expansion of its coffee factory in Timashevsk, in the Russian Krasnodar region. The letter of intent was signed today by Nestlé's Executive Vice-President Mr. Luis Cantarell and the Governor of the Krasnodar region, Mr. Alexander Tkachev just before the annual plenary session of the Foreign Investments Advisory Council of Russia, headed by the Chairman of the Russian Government.
The Governor of the Krasnodar region, Mr. Alexander Tkachev values Nestlé's investment plans: "We enjoy long-term relations with Nestlé. This large investment underscores the economic development of the Krasnodar region."
The investment by Nestlé will go into the introduction of new technologies and processes which will allow a significant capacity increase in this facility. According to the company, the Timashevsk factory will benefit from Nestlé's freeze-dry technology which will create coffee products of superior quality and create additional benefits to the Russian consumers.
Mr. Cantarell said: "I am proud of this pioneering new investment that we have decided to make in Timashevsk. It strengthens our leading position in the Russian coffee market and demonstrates our strong trust in the market's potential."
The Nestlé coffee factory in Timashevsk was inaugurated in November 2005 and became the first full-cycle production facility for instant coffee in Russia. The factory produces Nescafé Classic soluble coffee, Nescafé coffee mixes and other Nescafé products. In 2007, the factory produced 27,000 tons of finished products.
Over the past 14 years, Nestlé has built up a strong presence in Russia with over 11,000 employees and 14 production units. With double-digit growth rates and sales of CHF 2.1 billion in 2007, Nestlé is market leader in Russia in coffee, chocolate, culinary products and infant nutrition.