KENYA – Food processer Proctor & Allan East Africa is set to open a Sh1.8 billion ($20 million) manufacturing plant in Limuru to raise its production. The new facility is expected to open in April.
The new factory will be producing breakfast cereals, oats and pre-cooked, fortified flour.
“We’re looking at expanding and improving our entire product portfolio with more emphasis on breakfast cereals, oats and pre-cooked fortified flours with the latest technology in food processing,” said chief executive officer of Proctor & Allan East Africa David Kamau in an interview.
Fortification involves enriching processed foods with vitamins and minerals.
Mr Kamau joined Proctor & Allan last month having previously worked at Haco Tiger Brands as the marketing director in charge of brands marketing and innovation strategies across East Africa.
The firm says it will import manufacturing machines from European suppliers to install in the plant which will have a production capacity of 7 tons per hour.
It is estimated that it will employ 200 new staff. The company will mainly tap into internal cash reserves to develop the factory.
Local farmers are also set to benefit from increased orders for raw materials.
“At Proctor & Allan we believe in supporting local farmers, manufacturers and entrepreneurs. We will continue sourcing our packaging and raw materials from our current local suppliers,” said Mr Kamau.
The food processor’s expansion comes at a time when New York Stock Exchange-listed foods manufacturer, Kellogg’s, has announced that it will be coming to Kenya early this year.
Kellogg’s has been relying on imports to feed the local market but growth in population and middle-income consumers has attracted food multinationals to come to Kenya.
Locally, Kellogg’s brands include Pringles potato crisps, Rice Krispies, Fruit Loops, Coco Pops and Frosties.
February 1, 2015; http://www.businessdailyafrica.com/Corporate-News/Proctor-Allan-Sh1-8bn-Limuru-plant/-/539550/2609764/-/byaxmz/-/index.html