Global food production firm Nestlé launched a new wing in its R500m manufacturing facility in Babelegi, Hammanskraal, this week saying the company would continue to invest in South Africa and throughout the continent to meet growing demand.
Speaking at the inauguration of the Babelegi facility launched a year ago, Nestlé South Africa’s Managing Director Sullivan O’Carroll said “The official opening of our MAGGI Noodles and Nestlé cereals production sites are a direct response to the growing demand of our Nutrition Health and Wellness products in South Africa. We will continue to invest in South Africa, in line with our long-term commitment to business sustainability, growth and economic development,” said”.
The event was also attended by the the Minister of Trade and Industry, Rob Davies, Nestlé Group CEO Paul Bulcke other government officials, business and the community of Babelegi.
The R500m facility includes the construction of a 16 000 square metre factory for the manufacture of MILO and CHEERIOS breakfast cereals and the addition of new production lines for the manufacture of MAGGI Noodles, investments of R243 million and R173 million respectively.
The investment further provided an opportunity for a R47 million expansion of the existing creamers factory for additional capacity due to demand. This also led to the construction of an expanded distribution centre, valued at R37million.
O’Carroll further said “These investments are aligned to Nestlé’s quest to consistently satisfy our consumers by offering them quality, nutritious and affordable products. Local business will also benefit from this as most raw and packaging materials required for the manufacturing of our products will be sourced locally, thus creating a market for local business and farmers.’’
“We believe that for a company to be successful in the long-term it is crucial to create value for shareholders and the communities at the same time. This is what we call Creating Shared Value, our way of doing business,” concluded Bulcke.
The Babelegi investment has created more than 130 permanent jobs within the two factories and 300 indirect jobs over a 20 month period during the construction phase.
“We have been present on the African continent for more than a hundred years, and we see great growth opportunities for the future. This latest direct investment is proof of our continuous commitment to South Africa and the entire continent in which have spent 1 billion Swiss francs over the last two years, said Bulcke.