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Business of Food

Nestlé to build new production site in Ukraine

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2 min read
AUTHOR: Fiona Holland
Aerial view of Kiev Pechersk Monastery, Ukraine

Food giant Nestlé is investing 40 million CHF (just over £35M) in a new manufacturing plant in Smolyhiv, in the western Ukraine region of Volyn.

The location will become Nestlé’s European regional hub for developing food and other culinary products, focusing on boosting production of cold sauces, seasonings, soups, and instant food products for the Ukrainian market, as well as the rest of Europe.

Building a new production site will create 1,500 new jobs in the region, the company says, adding to the pool of 5,800 staff who currently work for Nestlé in Ukraine.

The company already has three factories in the country – the Svitoch confectionary factory in Lviv, the Mivina noodles factory in Kharkiv and a sauce production factory in Torchyn.

The Torchyn factory will collaborate with the new plant to boost production of food and culinary products, a Nestlé spokesperson said.

Nestlé is one of few international companies that have made new investments in Ukraine since Russia invaded it earlier this year. The company initially suspended its operations in the country, but reopened its factories a week later.

“This is an important move for Nestlé, taken in a very challenging time for the country. We aim to create a food and culinary hub, ensuring incremental jobs and serve the needs of Ukrainians and all European citizens with high-quality products,” Alessandro Zanelli, Nestlé CEO for South Eastern Europe Market, said in a statement.

In a bid to support Ukraine the company has also reduced its portfolio in Russia – suspending non-essential imports and exports as well as suspending all advertising and capital investment.

Learn more about how the war in Ukraine has impacted the food industry this year in this Food Matters Live Podcast episode:

War in Ukraine – what next for the global food system?

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