Nestlé invests CHF 30 million in new factory in Mozambique

To Press Releases listJul 1, 2010

New factory to help meet increasing demand for Nestlé products in Mozambique and neighboring countries of Malawi, Tanzania and Zambia

2 July 2010 – Nestlé today announced it is investing CHF 30 million in Mozambique over the next three years. The Company will build a new factory and significantly expand its existing distribution channel in major cities across the country. Total Nestlé employment in Mozambique will grow to 300 employees when the project concludes at the end of 2012.

The investment in Mozambique is part of a wider investment plan for the Equatorial African region. Over the next 3 years, Nestlé will invest CHF 150 million and more than double its work force by creating 750 new jobs in Equatorial Africa.

Nestlé Chief Executive Officer Paul Bulcke said, “Nestlé 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 Nestlé. 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. At the same time, we share our success by sourcing locally, creating new local employment and helping in the further development of the region.”

Mr Bulcke made the announcement in Nairobi at the end of his week-long tour of Nestlé’s Equatorial African Region (EAR), headquartered in Nairobi, Kenya. The EAR region spans 20 markets including Democratic Republic of Congo, Tanzania Kenya, Angola, Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Madagascar, Mauritius, Republic of Congo, Rwanda, Seychelles, Somalia, Uganda, Mozambique, Malawi, Zambia, and Zimbabwe.

During this tour of the region, Mr Bulcke also visited Mozambique and Democratic Republic of Congo, demonstrating Nestlé’s commitment and continued investment in the region. 

During this tour of the region,
Mr Bulcke also visited Mozambique and Democratic Republic of Congo, demonstrating Nestlé’s commitment and continued investment in the region.

In Mozambique, Mr Bulcke visited Beira, where Nestlé will make the bulk of the investment by building a new factory and a new distribution centre. The construction of the new factory will enable Nestlé Mozambique to produce culinary, coffee and beverage products locally.

Currently, Nestlé Mozambique sells NIDO, CREMORA, CEREVITA, NESCAFE, RICOFFY, MILO, CERELAC, LACTOGEN and NAN sourced from other markets with established factories. Besides supplying the local market, the new factory will supply Zimbabwe, Zambia, Malawi, and Tanzania.

Elaborating on the planned investment, Nestlé Executive Vice President responsible for Zone Asia, Oceania, Africa and Middle East, Frits van Dijk said, “The 20 countries forming Nestlé Equatorial African Region are grouped based on their somewhat similar social and economic development pattern. Our strategy in the region is based on a specific business model that supports local sourcing of raw material, production and distribution of our products. Following this strategy, we recently launched products like Maggi cubes, Nestea and we re-invigorated and relaunched our Milo brand in the EAR market.”

Nestlé is preparing the launch of its Global Healthy Kids Program in Mozambique. This education program aims to improve the knowledge of school children through a better understanding of the importance of good nutrition, greater physical activity, and other key health measures such as hygiene and sanitation. This project will also be launched in Mauritius and Kenya.

This initiative is an illustration of Creating Shared Value which is a fundamental part of Nestlé's way of doing business. It means that for a company to be successful, it should not only create value for shareholders but also for society at large. 

Mr Bulcke explained, “At Nestlé we recognize that our success depends on creating value for society – from the farmers who supply our products, to our employees, to our consumers and the communities where we operate. Our aspiration in the region is to source much of our raw materials locally to assist in developing the local economies. It has been a great honour for me to see first-hand this week how this is working on the ground.”

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Press contacts: for more information, please contact Ms Brinda Chiniah (brinda.chiniah@ke.nestle.com)

About Nestlé EAR

Nestlé Equatorial African Region (EAR) is a wholly owned subsidiary of Nestlé S.A. in Vevey, Switzerland — the world’s largest nutrition, health and wellness company — with sales of USD 99 billion in 2009. Nestlé EAR was set up in April 2008 and oversees the Nestlé operations in 20 countries: 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. R