Nestle announced $270 million new coffee factory in Vietnam

Nestle today announced a $270 million investment in a new coffee factory in Vietnam.

The new factory, located in southern Dong Nai province’s Amata Industrial Park, will produce Nescafe both for local consumption and for export, and it will be operational in 2013. The new facility will be able to process 46,000 tonnes of coffee beans per year.

The investment underlines Nestle’s commitment to Vietnam and to Nescafe, one of Nestle’s key brands worldwide.

“Today’s investment is fully aligned with the global Nescafe Plan, launched just a year ago, which brings our commitments to support responsible coffee farming, production and consumption together,” said Paul Kulcke, CEO of Nestle SA.

The Nescafe Plan contains a set of global objectives which will help Nestle further optimise its coffee supply chain, including an increase in direct purchasing, the distribution of new coffee plantlets as well as technical assistance programmes for coffee farmers.

In Vietnam, Nestle will significantly increase the amount of Nescafe coffee bought directly from farmers and their associations within five year, eventually purchasing 30,000 tonnes of coffee from around 16,000 farmers every years.

In addition, Nestle is working in a public-private partnership with the Vietnamese Ministry of Agriculture and Rural Development to improve coffee productivity through better farming practices as well as distribute high yield, disease resistant plantlets.

In Vietnam, Nestle currently operates four factories and employs more than 1,500 people nationwide. Between 1995 and 2011 Nestle significantly increased its capital investment in Vietnam from $25 million to $75 million in its current factory in southern Dong Nai province, which produces Milo, Nescafe, Nestea and Maggi.

Furthermore, La Vie – a joint venture of Nestle and a local company, expanded the capacity of its mineral water factories in southern Long An and northern Hung Yen province, with more than $7 million being invested between 2009 and 2010. – VIR

Tags: Nestle coffee factory in Vietnam