20 Apr 2016 Nestlé South Africa injects whopping R1.2-billion into Ricoffy factory upgrade
The inauguration ceremony this week, a milestone in the company’s 100-year history in the country, was attended by King Goodwill Zwelithini.
The R1.2-billion investment forms part of the company’s R2.9-billion foreign direct investment in SA over the last five years.
The expansion includes the construction of a waste-water treatment plant, a new coffee processing plant, the upgrading of existing coffee processing and a state-of-the-art coffee drying plant.
“Investments of this magnitude demonstrate the Nestlé Group’s commitment to long-term business building and the economic development in Africa,” says Ravi Pillay, corporate affairs director for Nestlé South 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.”
2016 marks Nestlé’s 100th year in South Africa
The Estcourt factory is one of the first three factories that the company acquired when it established its presence here 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,” adds Pillay.
“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.”
Chicory farming to support factory
In 2015 the company launched a chicory farming initiative in KZN and the Eastern Cape in partnership with the Department of Trade and Industry (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,” notes Pillay.
The DTI minister, Dr Rob Davies, says the coffee plant is a significant boost for South Africa and the local economy of KZN.
“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.
“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 Davies.
Nestlé South Africa has eight manufacturing facilities, three distribution centres and 3 500 full time permanent employees across the country.
Source: Nestlé South Africa