The expansion of a Nestle South Africa instant coffee manufacturing plant was inaugurated, following the company’s R1.2 billion ($83 million USD) investment in the factory, the company announced recently.
The expansion of the Estcourt, South Africa-based factory includes a waste water treatment plant, a new coffee processing plant, an upgrade of existing coffee processing, and a coffee drying plant. Over the last five years, Nestle has committed R2.9 billion ($200.6 million USD) in foreign direct investment to bolster its South African operations. About 20 direct, and more than 470 indirect, jobs were created as a result of the expansion, the company said.
“Investments of this magnitude demonstrate the Nestle Group’s commitment to long-term business building and the economic development in Africa. Through this investment, we will increase the capacity of our coffee factory and meet the growing consumer demand for coffee in the region,” said Ravi Pillay, corporate affairs director for Nestle South Africa, in a press release.
2016 marks 100 years of Nestle operations in South Africa. The factory in Estcourt is one of the first three factories acquired by Nestle when it established its presence in the country in 1916. A chicory farming initiative was launched in 2015 in Kwa-Zulu Natal and the Eastern Cape Provinces, a key component of Nestle’s instant coffee mixtures Ricoffy and Ricoffy Mild.
“This investment by Nestle over the past five years confirms that multinationals view South Africa as a preferred investment destination and a vote of confidence in South Africa,” said Dr. Rob Davies, minister of South Africa’s Department of Trade and Industry. “The project contributes to the industrial development of South Africa and our regional integration objective. Lastly, the upgrade and expansion in the Estcourt plant positions Nestle as a coffee manufacturing hub for the African continent.”
In total, Nestle has eight manufacturing plants, three distribution centers, and 3500 full-time permanent employees in South Africa.