Nestle to build new Nescafe plant in Vietnam

Swiss food giant Nestle has planned  a £180m investment in a new coffee factory in Vietnam, in order to strengthen its global Nescafe Plan and its commitment to the country. The new factory will commence operations by 2013.

The factory, which will be located in Dong Nai province, will produce products under the Nescafe brand for both local consumption and export. This investment supports its CHF350m (about £437m) Nescafe Plan, launched in August 2010. Under the plan, Nestle aims to increase the amount of Nescafe coffee bought directly from farmers and their associations, over the next five years in Vietnam.

In addition, the company is working together with the Vietnamese Ministry of Agriculture and Rural Development to increase coffee productivity through better farming practices.

The factory is expected to create 200 new jobs as well as many indirect jobs, while focusing on energy and water savings. Nestle plans to engage with 20,000 Vietnamese coffee farmer households within five years.

Nestle CEO Paul Bulcke said the investment is aligned with the global Nescafe Plan, launched a year ago, which brings the company’s commitment to support responsible coffee farming, production and consumption together.

“They are a clear demonstration of our commitment to Creating Shared Value, which is Nestlé’s way of doing business,” Bulcke said.

The Nescafe Plan, which is a part of Nestle’s CHF500m (about £400m) investment in coffee projects by 2020, has a set of global objectives which aim to help the company further optimise its coffee supply chain.

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