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Nestlé has completed expansion of its instant cereals factory in Vologda.
24.04.2014 15:47
Nestlé expanded production facilities in Vologda and constructed a new cereals line with RUR 1,7 bln investment into construction of a new production shop, installation of production and packing lines, warehouse construction, and utilities development. The launch of new production will enlarge Nestlé infant cereals assortment and strengthen company’s leading positions on the markets of Russia and CIS. The company will provide local citizens with extra workplaces.
The launch of a new production line was attended by Vologda Oblast Governor Oleg Kuvshinnikov.
Foreign companies like Nestlé have come to the region due to its convenient geographical location and local workforce. Nestlé, the world's leading nutrition, health and wellness company bought Vologda baby food factory in 2003. The Vologda factory, Nestlé's tenth facility in Russia, became the company's first one to produce baby cereals. Nestlé currently owns a production facility in the city of Vologda and constantly invests in the factory to provide new tastes and products for its local consumers.
Starting from January 2010, Nestlé launched a new cereals line in Vologda in order to produce its branded cereals under the "Bistrov" brand. The new line created more than 150 new jobs. More than 200 million rubles were invested into expanding production at the Vologda factory. Nestlé constantly invests in developing the Vologda factory in order to offer consumers new tastes and new products.
The consolidation of baby food and cereals business in Vologda allowed managing the Russian business more effectively and optimizing the operating costs. Vologda's plant is a key Nestlé's factory for the production of baby food and instant hot cereals supplied not only to Russia, but to other CIS countries.
Today Nestlé Russia announced successful business results for 2013. In 2013 Nestlé sales in its Russia-Eurasia region reached RUR 78,2 bln, showing a solid 12% growth vs. last year.
The CEO of Nestlé Russia&Eurasia Mr. Maurizio Patarnello commented: “In 2013 Nestlé Russia-Eurasia demonstrated significant growth. In Russia, Nestlé achieved double-digit growth of sales in five categories of products and considerably strengthened positions of key brands. We are looking into the future with confidence and continue investing into development of our business here”.