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Nestlé invests R500m in SA expansion

7 February 2011

Multinational food and nutrition company Nestlé says it is investing about 67-million Swiss francs (more than R500-million) on expanding its operations in South Africa, the majority of which will go toward the construction of two new factories in Gauteng.

The two factories will be built in the town of Babelegi, situated some 60km north of Pretoria, at a cost of over R390-million and create about 290 permanent jobs.

Nestlé has also spent a further R106-million on the recent acquisition of Specialised Protein Products, a soya processing company in Potchefstroom, North West Province.

"With this investment, we are proud to express our continued confidence in South Africa's future," Nestlé South Africa MD Sullivan O'Carroll said at the sod-turning ceremony at the site of the first factory in Babelegi last week.

"In line with our long-term approach to business, it will not only create value for our shareholders, but also those local enterprises and farmers who will supply us with the majority of the raw materials required for manufacturing our products."

Production of cereals, noodles, creamers

The first new factory, to be built in the town of Babelegi, will be a 16 000 square metre facility to enable the local production of Milo and Cheerio cereals, which are currently being imported.

This will create 70 permanent jobs and at least 100 indirect jobs in its construction phase. A number of permanent employees will have the opportunity to develop their skills and receive training abroad with Nestlé engineers and technology specialists.

The second factory will produce Maggi products such as bouillons, seasonings and noodles. This will generate 160 permanent jobs and at least 200 indirect jobs during the construction phase.

With the acquisition of Specialised Protein Products, including the continued employment of its 120 existing staff, Nestlé aims to increase production capacity of its non-dairy creamers while developing other high-quality, affordable soya-based products.

SAinfo reporter