UKRAINE—Nestlé, the world’s largest food company, plans to start production at a new factory in Ukraine by the end of 2024.
The facility, located in Volyn oblast in northwest Ukraine, will manufacture noodles and serve as the “European regional hub” for the company’s “culinary products category.”
The new factory, situated in the village of Smolyhiv about 40 miles from the Polish border, was initially slated to begin operations in the first quarter of 2024.
However, Nestlé has now confirmed that production will commence in the fourth quarter of the year. The company spokesperson did not provide a reason for the delay.
Nestlé already has a factory in Torchyn, just four miles east of the new site, which produces sauces. The Swiss giant also operates two other production facilities in Ukraine: a coffee and confectionery plant in Lviv and a noodles factory in Kharkiv. In total, Nestlé employs around 5,500 staff in the country.
The opening of the new factory in Smolyhiv is expected to gradually create 300 to 400 new jobs in manufacturing.
Nestlé has stated that the two sites in Smolyhiv and Torchyn will supply customers in Ukraine and other undisclosed European markets.
Despite the ongoing conflict in Ukraine, Nestlé has maintained its presence in the country. The company has been featured on Ukraine’s “international sponsors of war” list, which aimed to raise awareness of large companies continuing to operate in Russia following the invasion.
However, the list has recently been moved out of the public space due to appeals from several countries and concerns over its impact on decision-making to counter Russian aggression.
In its 2023 annual report, Nestlé listed six factories in Russia, producing a range of products including beverages, dairy, nutrition and health science, prepared dishes, confectionery, and pet food.
The company has stated that it has stopped advertising and suspended further capital investment in Russia, while continuing to fulfill its obligations to employees and providing essential and basic foods to the local people.
The expansion of Nestlé’s production in Ukraine demonstrates the company’s commitment to the country and its belief in the long-term potential of the Ukrainian market.
The new factory will not only create jobs but also contribute to the local economy and support the country’s recovery efforts.
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