Nestlé launches R1.2 billion expansion in S.A coffee plant - CNBC Africa

Nestlé launches R1.2 billion expansion in S.A coffee plant

Southern Africa

by Aviwe Mtila 0

This is part of the R2.9 billion ($200 million) Nestle has invested in the coffee factory over the last five years. Photo: Flickr.

Nestlé launched its R1.2 billion ($83 million) investment to its South African coffee producing factory in Estcourt, Kwa-Zulu Natal on Tuesday.

This is part of the R2.9 billion ($200 million) the company has invested in the coffee factory over the last five years.

His royal majesty, King Goodwill Zwelithini, Estcourt's Mayor, Dudu Mazibuko and the Deputy Minister of Agriculture, Forestry and Fisheries, Bheki Cele, were among the dignitaries that attended the event.

“This is the right thing to do to uplift rural communities and create jobs,” the king said.

Together with the investment launch, the 150-year-old Swiss company was celebrating 100 years of doing business in South Africa.

The expansion in South Africa includes the construction of a waste water treatment plant‚ a new coffee plant‚ a new coffee processing plant‚ the upgrading of the existing coffee processing and the installation of a coffee drying plant.

“Nestlé has also benefited from government through the Manufacturing Competitiveness Enhancement Programme‚ meant to drive growth‚ promote competitiveness and retain jobs,” says Nestlé’s Ravi Pillay.

Pillay added that the company spends R6-billion per annum on local procurement and has employed 6 000 people‚ buys from 227 farmers‚ has eight factory facilities and 95 per cent of products are procured locally.

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