Ukraine

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10:31 AM Tuesday, October 23, 2018
Agriculture
Nestle Plan Kharkiv Investment & Expansion
Nestle will invest $27 million to renovate their factory, improve production and increase salaries for workers
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By Natalia Datskevych

KHARKIV – Discussions last week between global food giant Nestle and the regional administration of Kharkiv have resulted in an investment package valued at $27 million being secured for the region. As a result, production and sales will increase, as will salaries for workers here.

Nestle CEO for Ukraine and Moldova, Ansgar Bornemann, and head of the Kharkiv Oblast State Administration, Yulia Svetlichna, concluded talks that would finalise the important deal.

The money will be used to fund major renovations and upgrades at Nestle’s Mivina factory, where a variety of snacks and food products are produced. Bornemann said the company will funnel the cash into this project over the next three years. Over the last year, the factory has produced 34,000 tons of food products, 40% of which was exported to 17 countries around the world.

CEO of Nestle Ukraine, Ansgar Bornemann, (pictured) has seen consumer spending grow in Ukraine as the economy recovers from the 2014-2015 economic collapse. Now he's overseeing Nestle as they strengthen their market position here in Ukraine. (Photo supplied).

CEO of Nestle Ukraine, Ansgar Bornemann, (pictured) has seen consumer spending grow in Ukraine as the economy recovers from the 2014-2015 economic collapse. Now he's overseeing Nestle as they strengthen their market position here in Ukraine. (Photo supplied).

Expanding their production capabilities in Kharkiv is expected to boost sales and create jobs. Sales volume in Ukraine is currently valued at $7 billion, according to company data.

Managers are keen to focus on modernization of their factory’s production line, in order to to increase efficiency. The company is also moving ahead with plans to improve conditions for their 1,200 workers in Kharkiv. Their salaries will be increased by 15%, according to company directors.

Nestle has invested more than $312 million into their Ukrainian operations since 1994. As well as their Mivina factory in Kharkiv, they operate plants in Torchyn, Volyn and Lviv.

“We want to show the world that Ukraine is changing and is becoming more attractive for investment,” said CEO Bornemann. “Nestle offers a vivid example of this."

Nestle - the world's largest food company - has made significant strides into the market here in Ukraine, but also exports from the country too. Last year, they increased production of Artek, a sweet wafer popular in Ukraine but also sold to Hungary, Moldova, Belarus and the Czech Republic. The company also produces and exports seasoning to Nigeria, as well as noodles and confectionery to Brazil. Demand is also strong for ketchup.

The company moved into Ukraine almost 25 years ago and despite the ups and downs of recent years, company directors say that they are starting to see growth and stability on the near horizon.


For comments or story ideas, please contact the UBJ Reporter for this story, Natalia Datskevych at: natalia.datskevych@theubj.com


Posted April 9, 2018

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