Nestlé launches production of vermicelli at new factory worth CHF40 mln in Ukraine

Swiss Nestlé has launched the first production line of a new vermicelli factory in Smolyhiv (the Torchyn community of Lutsk district in Volyn region), which is the result of an investment of CHF40 million ($50 million at the current exchange rate) announced 30 months ago, the company said in a release on Monday.

"The production capacity of the first line will allow the company to produce 5,000 tonnes of vermicelli by the end of 2025, with a planned increase in production volumes with the opening of additional lines in the next two years," the release said.

Nestlé indicates that the factory in Smolyhiv is the fourth factory opened in the company's 30 years of operation in Ukraine.

"With the opening of the new factory, the company has created a European hub for food production in Ukraine in Volyn, combining the new factory in Smolyhiv with the one already operating in neighboring Torchyn," the report notes.

According to it, the company is expanding the production of vermicelli to meet the growing demand for it both in Europe and in Ukraine under the Maggi and Mivina brands. The new factory is an export-oriented enterprise: 75% of the products will be supplied to EU markets under the Maggi brand, which will increase foreign exchange earnings in Ukraine. At the same time, 75% of the raw materials for production come from local suppliers in Ukraine, the key ingredients are wheat and sunflower oil.

"The advantageous geographical location of the factory in western Ukraine creates ideal conditions for Nestlé to produce in Ukraine for both the local market and for export," the release quoted the words of Nestlé's CEO in Ukraine and South-Eastern Europe Alessandro Zanelli.

He added that the factory is a modern, digital and fully automated production facility.

The head of Volyn regional military administration, Ivan Rudnytsky, recalled that a factory producing ketchup and sauces under the Torchyn brand and a Nestlé distribution center are already operating in the region, and the launch of the new factory has created more than 300 new jobs, and their number will be increased in the near future and will exceed 1,500 people in total in the newly created production hub in Volyn.

Nestlé is one of the world's largest food and beverage companies, represented in 187 countries. It offers a wide range of products and services for families and pets. It has over 2,000 trademarks.