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Switzerland’s Nestlé, one of the world’s largest food producers, has launched a plant in Vologda to produce baby formula.
Investments in the project amounted to 1.9 billion rubles, said Marcial Rolland, Nestlé’s CEO in Russia and Eurasia region.
The first stone of a new branch of Nestlé Vologda, affiliate of a Swiss transnational food and drink company was laid in 2017. The new plant will release 12,000 tons of finished products per year.
The factory in Vologda is a strategic plant for Nestlé in Russia and CIS, the only factory producing Nestlé infant formula in the Russia and Eurasia region. This new factory will strengthen the company’s leading position in the Russian infant formula market by developing an ability to supply both the domestic and the export markets.
Nestlé said that the factory will use proven state-of-the-art equipment to meet the highest quality standards. It will also apply Nestlé’s principles on reducing environmental impact, aiming for zero waste.
Nestlé came to the region in 2003. The Vologda factory, Nestlé’s tenth facility in Russia, became the company's first one to produce baby cereals. Nestlé currently owns a production facility in the city of Vologda and constantly invests in the factory to provide new tastes and products for its local consumers.
The consolidation of baby food and cereals business in Vologda allowed managing the Russian business more effectively and optimizing the operating costs. Vologda's plant is a key Nestlé factory for the production of baby food and instant hot cereals supplied not only to Russia, but to other CIS countries.
In 2014 Nestlé expanded production facilities in Vologda and constructed a new cereals line. The launch of new production enlarged Nestlé infant cereals assortment up to over 40 articles and strengthened company’s leading positions on the markets of Russia and CIS. The company also provided local citizens with extra workplaces.
"When companies like Nestlé, the world's leading nutrition, health and wellness company, come to Vologda, it means that the local government is conducting the efficient investment and tax policy to attract dominant players on international food markets," noted Vologda Region Governor Oleg Kuvshinnikov.