Nestlé to invest US$97m in Spain’s largest coffee factory

SPAIN – Nestlé has plans of investing EUR100m (US$97m) in one of its largest coffee factories, based in Spain, over the next three years to make the factory even more competitive from a portfolio point of view.

The Nespresso owner will use the investment to increase its production capacity of instant coffee and coffee capsules at the factory in Girona, Catalonia, and invest in technology to improve sustainability and logistics.

The Girona factory already serves the domestic market and exports “significant volumes” to Europe, America, Asia, Africa, and Oceania.

Nestlé said: “The investment will allow us to focus on the production and filling of soluble coffee based on spray dry technology and the production of coffee capsules in line with the growth of the market.

“The 100 million to be invested in the focus areas will make the factory even more competitive from a portfolio point of view allowing further innovation deployments.”

The Girona factory, which began producing Nescafé Dolce Gusto in 2008, directly employs 870 people and the investment is expected to create more jobs, which Nestlé said the number would depend on “market demand evolution”.

In 2020, the factory exported 80% of its production to 59 countries including Switzerland, the UK, France, Greece, and Mexico.

The factory’s director, Jordi Jaen was very proud of the investment in the Girona factory, saying the investment “consolidates” the plant as a key player in Nestlé’s coffee production.

Nestlé has also moved to close the site’s decaffeination plant although Jaen said the reorganization would not lead to job losses, confirming, the company will maintain employment for all those affected [42 people] with relocations to other positions within the Girona factory. The rest of the employees will not be affected.

The announcement succeeds in investing in Nestlé’s Asia and Americas coffee markets earlier this year when it opened its second coffee plant in Mexico in a project that cost US$340m and created 1,200 jobs.

According to Nestlé, the plant is installed with state-of-the-art equipment and green energies to reduce water and energy consumption.

The Swiss multinational food and drink processing conglomerate corporation has also announced huge investment plans in India of around US$613m by 2025 – its biggest investment in the South Asian country since it started manufacturing there in 1961.

The funds will be used on capital expenditure, setting up new plants, acquisitions, and an expansion of its product portfolio, CEO Mark Schneider said.

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