Nestle Foods plans N15b production line increase for Ogun plants

How Nestle, Flour Mills, Others Got $660m CBN Foreign Exchange Allocation

Nestle Foods, the world’s leading nutrition, health and wellness company, has disclosed plans for a N15 billion production line expansion for its plants in Ogun State, to be executed in two phases- N6 billion in 2016 and N9 billion in the year 2017.

It will be executed in two phases, that is N6 billion in 2016 and N9 billion in the year 2017.

The company already has some production lines and warehouses in three locations in the state, in Agbara, Sango-Ota and Sagamu-Interchange, on Lagos-Ibadan expressway, where about 2,000 residents of the state were directly employed, in addition to other factory workers sourced from other parts of the country and abroad.

Speaking during a working visit to Governor Ibikunle Amosun in Abeokuta, the state capital, Managing Director and Chief Executive Officer, Nestle Nigeria Plc, Dharnesh Gordhon, disclosed that the expansion drive became necessary in the state, having observed the government’s efforts in terms of security and enabling business environment.

Gordhon, who said the visit was to commend investor-friendly disposition of the government, which has attracted huge investment opportunities to the state.

He said 2,000 residents of the state were directly employed in Nestle’s operation and distribution lines while another 2,000 employees, including workers from other parts of the country and abroad, were also employed, adding that the expansion drive would create further employment opportunities and wealth creation in the state.

The state’s Commissioner for Commerce and Industry, Bimbo Ashiru, said “Nestle is investing over N6 billion in the state this year and between N7 billion and N9 billion next year. So, they are expanding their base, they are creating employment opportunities; they have employed about 2,000 people in this state.”And we are looking at taking advantage of backward integration, whereby larger percentage of raw materials used will be sourced locally.

For more, visit The Guardian.

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