Nestlé expands operations in South Africa

Nestlé South Africa has officially inaugurated its instant coffee manufacturing plant in Estcourt factory after a US$85 million investment into the expansion of the factory. The inauguration ceremony was attended by His Majesty, King Goodwill Zwelithini and the Premier of KwaZulu Natal, Senzo Mchunu. The US$85 million  investment into the expansion of the factory forms part of the company's US$200 million foreign direct investment in the last five years. The expansion included the construction of a waste water treatment plant, new coffee processing plant, upgrading existing coffee processing and state of the art coffee drying plant. Since construction commenced, at least 20 direct and more than 470 indirect jobs were created. “Investments of this magnitude demonstrate the Nestlé Group’s commitment to long-term business sustainability and economic development in Africa,” said Ravi Pillay, Corporate Affairs Director for Nestlé South Africa. “Through this investment, we will increase capacity for our coffee factory and meet the growing consumer demand for coffee in the region. This is also aligned with our ambition of being the world’s leading Nutrition, Health and Wellness Company while offering our consumers quality, nutritious and affordable products.” 2016 marks 100 years of Nestlé’s operations in South Africa and the Estcourt factory is one of the first three factories that the company acquired when it established its presence in South Africa in 1916. Pillay added, “We believe that for a company to be successful in the long-term it has to create value for shareholders and communities where it operates.” In 2015 the company launched a chicory farming initiative in Kwa-Zulu Natal and Eastern Cape Provinces in partnership with the Department of Trade and Industry (Dti) and the Department of Agriculture (DoA). “Chicory is a key ingredient in our instant coffee mixtures – Ricoffy and Ricoffy Mild. Through our partnership with the Dti and DoA, identified farmers will supply us with chicory and we will ensure a stable supply of income for them, thus creating shared value,” said Pillay. Nestlé South Africa has eight manufacturing facilities, four distribution centres and 3500 full time permanent employees across the country.

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