Nestlé expands US operations with US$650m investment in new export processing facility 

USA – Nestlé, the world’s largest food company, is planning to expand its USA factory with a new mega export  processing facility in Glendale, Arizona.

The owner of the Nescafe coffee brand is said to be planning a US$675 million investment that, according to one analysis, could create an economic impact of US$2.1 billion in the city of Glendale over the next 10 years. 

According to a report by Phoenix Business Journal, the city council is scheduled to vote whether or not to adopt a resolution supporting the Nestlé application for foreign trade zone status on the site.  

An FTZ is an area within the U.S. where foreign and domestic merchandise is considered to be outside the country, or at least, outside the U.S. Customs territory.  

Furthermore, the FTZ offers qualifying companies federal tariff and tax relief, and in Arizona it can provide for a property tax reduction.   

The FTZ site would provide for a 71% reduction in property taxes for Nestlé USA, the city’s economic development department notes.  

However, the economic impact of the US$400 million capital investment in an FTZ, even with the property tax reduction, would still be substantial 

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Phoenix-based economic consulting firm Applied Economics in a 10-year impact forecast estimates Nestlé could create 200 jobs by the fourth year of operations in addition to an estimated 1,900 indirect jobs. 

“The location of this company in Glendale would not only create new high-wage jobs in the community, but also support a significant amount of additional economic activity at related local supplier and consumer businesses, as well as generating new tax revenues,” Applied Economics wrote in its analysis. 

In a later report, the Daily Independent reported that City Council of Glendale  unanimously, and routinely, approved Nestlé USA’s zoning application with no discussion.

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The world’s largest food company is expected now to build a 142-acre manufacturing facility that, according to one analysis, could create an economic impact of US$2.1 billion for Glendale during the next 10 years.

The new plant will open in 2024 to help meet increasing consumer demand for plant-based products, according to Nestle USA. 

The factory will produce high-quality creamers for Nestlé’s category-leading portfolio, including the Coffee mate, Coffee mate natural bliss, and Starbucks brands, with the ability to expand to additional beverages in the future.

Over the past two years, Nestlé in the U.S. has invested nearly US$3 billion to enhance its manufacturing footprint and in-house capabilities – from new factories and expansions to operational changes that help meet its sustainability targets.

The new Glendale facility is set to open in 2024, joining Nestlé USA’s robust network of 14 existing food and beverage factories across the U.S.

It will be the company’s most technologically advanced factory and distribution center, utilizing innovative digital tools and offering flexibility to meet the changes in consumer demand.

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