Nestlé has laid the foundation stone for its first infant formula plant in Russia. The investment of CHF 30 million (RUB 1.8 billion) means Nestlé can offer a greater variety of infant nutrition to consumers, the company says.

Nestlé begins construction of Russia infant formula plant

Nestlé has laid the foundation stone for its first infant formula plant in Russia. The investment of CHF 30 million (RUB 1.8 billion) means Nestlé can offer a greater variety of infant nutrition to consumers, the company says.

The plant will be part of the existing Vologda site, where Nestlé has operated for 14 years. It will, according to the company, strengthen Nestlé’s leading position in the Russian infant formula market, and support export to neighbouring countries.

“The factory in Vologda is a strategic plant for Nestlé in Russia and CIS, the only factory producing Nestlé infant formula in the Russia and Eurasia region,” said Martial Rolland, CEO of Nestlé in Russia and Eurasia. “This new factory will allow us to strengthen our leading position in the Russian infant formula market by developing our ability to supply both the domestic and the export markets.”

The investment is said to be in line with Nestlé’s strategy to increasingly focus capital spending on the high-growth food and beverage categories of coffee, petcare, infant nutrition and bottled water.

The factory will be operational by 2019. It will use proven state of the art equipment to meet the highest quality standards. It will also apply Nestlé’s principles on reducing environmental impact, aiming for zero waste.

In the last 20 years, Nestlé Russia has invested around CHF 2 billion into the development of local production. The company owns eight factories in Russia.