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BUSINESS STRATEGY
Nestlé opens SA plant to help streamline supply chain operations
By our News Team | 2023
New facility near Pretoria is a ‘significant milestone’ in meeting local market needs and supporting economic development.
Nestlé has unveiled a new US$4,4-million (ZAR79-million) manufacturing plant in South Africa. By producing locally, the company aims to streamline supply chain operations, reduce environmental impact, and ensure fresher products for consumers.
The plant will manufacture Nescafé coffee mixes and related products, with the Swiss-based multinational saying in a media statement that it marks “a significant milestone in the company’s commitment to meeting local market needs and supporting economic development”.
Carl Khoury of Nestlé East & Southern Africa at the launch of the company’s new production facility. Photo credit: Nestlé
Previously the products were imported from South Korea, where they were manufactured by local company Lotte Foods as part of a joint venture.
The factory is located at Hammanskraal, near the capital city of Pretoria and will use 46% locally sourced raw materials.
The company is on a drive to increase local sourcing in its African operations – including in Nigeria – to reduce foreign exchange exposure and mitigate the impact of high levels of food inflation.
Nestlé’s aim at the Hammanskraal plant is to achieve 90% local materials sourcing. Most production is targeted for South African consumption, while a small percentage going to other African countries or further afield.
Commitment to cater to consumers’ evolving needs
According to Nivasha Pather, the company’s Marketing Manager for Nestlé East and Southern Africa (known as ESAR), the launch of the coffee mixes plant solidifies Nestlé’s commitment to industrial development and investment in the region, as well as its commitment to cater to consumers’ evolving needs.
“We are excited to officially open our coffee mixes manufacturing plant and demonstrate our dedication to the local market,” said Carl Khoury, Business Executive Officer, Coffee and Beverages, at Nestlé ESAR in a media statement.
“The importance of revitalising South Africa’s manufacturing sector, including its contribution to the economy and export promotion, is emphasised in key national policies such as the Reconstruction and Recovery Plan.
“We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy.”
In a post published on LinkedIn, Nicole Roos, MD and Chairperson at Nestlé ESAR, added: “But it’s not just about production; it’s about creating opportunities. We have already created 27 employment opportunities in engineering and production. Sixty-seven percent of our team members are from the Hammanskraal area, and we are proud that this initiative has been led by an all-women start-up team.”
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