Nestlé South Africa injects R1.2 billion into local economy


To Press Releases listApr 19, 2016

19 April 2016, Estcourt, KwaZulu Natal: Nestlé South Africa officially inaugurated its instant coffee manufacturing plant in Estcourt after a R1.2 billion investment into the expansion of the factory. The inauguration ceremony, a remarkable milestone in the company’s 100 year history in the country, was attended by His Majesty, King Goodwill Zwelithini.

The R1.2 billion investment into the expansion of the factory forms part of the company's R2.9 billion foreign direct investment in the last five years. The expansion includes the construction of a waste water treatment plant, a new coffee processing plant, the upgrading existing coffee processing and a state of the art coffee drying plant. Since construction commenced, at least 20 direct and more than 470 indirect jobs were created.

“Investments of this magnitude demonstrate the Nestlé 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. This is also aligned with our ambition of being the world’s leading Nutrition, Health and Wellness Company while offering our consumers quality, nutritious and affordable products.” said Ravi Pillay, Corporate Affairs Director for Nestlé South Africa.

2016 marks Nestlé’s 100th year of operations in South Africa. The Estcourt factory is one of the first three factories that the company acquired when it established its presence in South Africa in 1916.

“We are extremely proud to be inaugurating this factory in our centenary year. For 100 years we have been manufacturing proudly South African products for South Africans by South Africans and contributing to the local economy through job creation and foreign direct investment. We believe that for a company to be successful in the long-term it has to create value for shareholders and communities where it operates,” stated Pillay.

In 2015 the company launched a chicory farming initiative in Kwa-Zulu Natal and Eastern Cape Provinces in partnership with the Department of Trade and Industry (the dti) and the Department of Agriculture , Forestry and Fisheries (DAFF) .

“Chicory is a key ingredient in our instant coffee mixtures - Ricoffy and Ricoffy Mild. Through our partnership with the dti and DAFF, identified farmers will supply us with chicory and we will ensure a stable supply of income for them, thus creating shared value,” concluded Pillay.

The Miniter of the dti, Dr Rob Davies says the coffee plant is a significant boost for South Africa and the local economy of KwaZulu Natal. Minister Davies further congratulates Nestlé for its 100th year anniversary in South Africa and for investing R 2.9 billion over the past five years.

“This investment by Nestlé over the past five years, confirms that multinationals view South Africa as a preferred investment destination and a vote of confidence in South Africa. 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 Nestlé as a coffee manufacturing hub for the African Continent . the dti has a long standing relationship with Nestlé and has provided support through incentives, supplier development and facilitation of their investment.”, says Minister Davies.

Nestlé South Africa has eight manufacturing facilities, three distribution centres and 3500 full time permanent employees across the country.

For any queries, please contact:
Ravi Pillay |Corporate Affairs Director: Nestle South Africa |01151467990115146799 |082 908 2580082 908 2580
Ravi.pillay@za.nestle.com