Nestlé announced on Monday that it will invest $42.88 million in a new production facility in western Ukraine amid the country’s ongoing war with Russia.
The announcement makes Nestlé one of the few international companies to launch new investments in Ukraine since Moscow invaded the eastern European nation in late February.
“This is an important move for Nestlé, taken in a very challenging time for the country,” read a statement by Alessandro Zanelli, Nestlé chief executive officer for South Eastern Europe Market.
“We aim to create a food and culinary hub, ensuring incremental jobs and serving the needs of Ukrainians and all European citizens with high quality products,” the statement continued.
BABY FORMULA SHORTAGE GETTING WORSE DESPITE WHITE HOUSE INTERVENTION
Nestlé already has about 5,800 staff members in Ukraine and is planning to add 1,500 new jobs at the new production facility, which will be located in Smolyhiv in the Volyn region.
The new Nestlé factory is intended to help boost cold sauces, seasonings, soups and instant food production, which would supply the domestic market and European markets.
Russia’s invasion has damaged Ukraine’s economy, which is projected to diminish by 35% this year, according to the International Monetary Fund.
Power blackouts in recent weeks have spread throughout Ukraine as Russia continues waging attacks on the country’s power facilities.
AS WAR IN UKRAINE INTENSIFIES, NESTLÉ SUSPENDS SALES OF KITKAT, OTHER PRODUCTS IN RUSSIA
In March, Nestlé had suspended sales of a “vast majority” of products in Russia. These products included those from Nestlé brands KitKat and Nesquik.
“We are suspending the vast majority of our pre-war volume of products in Russia, which includes categories such as pet food, coffee and confectionery,” a Nestlé spokesperson said in a statement to FOX Business at the time, adding that the company will only “focus on providing essential food, such as infant food and medical/hospital nutrition – not on making a profit.”
Reuters contributed to this report.
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