UK – Nestle, a leading food and beverage company is set to invest US$26.5million in its Kharkiv-based Mivina factory in Ukraine to modernize and upgrade production at the site.
The investment which increases capacity and efficiency in production of noodle-based soups and mashed potato is part of the company’s strategy to improve production facilities in the region, reported Food Navigator.
Mivina factory produces prepared foods under the Mivina brand, sold at the local market while others are exported to 17 other European countries.
The facility also produces other Nestle brands such as Maggi, Winiary and the Novaya soy sauce which are not only sold in Europe but also around the world.
According to Nestle, they plan to carry out the upgrade began in 2015 and will occur in two phases set to complete by 2021.
“The final project plan was approved in early 2018.
The main goal is to develop the factory, improve working conditions and increase the competitiveness of products.
Reconstruction will help not only modernize the enterprise but also improve the technology of production,” said Nestlé CEO for Ukraine and Moldova Ansgar Bornemann.
Kharkiv factory has three production sites involved in producing quick-coated spinach and fast-serving egg noodles; spices and instant potato pulp; and cardboard packaging.
The upgrade will also involve updating the recipe for Mivina products by reducing fat content, something that complements Nestle’s strategy to grow a healthy portfolio.
Nestle increased its investments to US$15.1million at its production facilities in Ukraine in 2016, including US$5.6m in a new waffle production line at Lviv confectionary factory Svitoch.
Nestle is seeing growth in Ukraine despite bad times in the market, marred with low consumer spending in Europe.