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Nestle to invest £91m in Equatorial African Region

Swiss food company will expand operations in Kenya, Mozambique and Democratic Republic of Congo.

Nestle, a Swiss food and beverage company, is ready to build new plants in the Equatorial African Region (EAR), including Angola, the Democratic Republic of Congo (DRC) and Mozambique, and also expand its current plants, with an investment of CHF150m (£91.3m) during the coming three years.

The Swiss company will build a new plant in the Congolese capital Kinshasa, which is earmarked to produce culinary and coffee brands including Maggi and Nescafe 3-in-1, and said that other products offered under the dairy, beverages and some coffee categories will be tailored to respond to local market needs.

Nestle currently operates a distribution centre in Kinshasa at which it will expand the total number of employees to 300 by 2012. The company will also boost its distribution capacity in the region by opening 13 new distribution facilities and nearly double its work force by creating 750 new jobs by 2012.

Nestle has also committed an investment of CHF30m (£18.3m) to establish a new factory and distribution centre in Beira, Mozambique. The factory, which manufactures Nestle products including culinary, coffee and other beverages, will serve rising demand in Mozambique and neighbouring countries will create over 260 new jobs within three years.

The company will invest CHF25m (£15.2m) in a new factory in Angola, which is expected to bring the total number of employees to 145 by 2012. Currently, Nestle sources products for the Angolan market from other markets such as Portugal and Brazil.

For expansion in Kenya, Nestle is investing CHF30m (£18.3m) in its Nairobi factory including a new production line to support its newly-launched food service division, Nestle Professional. The factory will supply Kenya, Uganda, Tanzania, Rwanda, Burundi, Eastern Democratic Republic of Congo, Malawi and Zambia.

Furthermore, in Zimbabwe, Nestle is investing in the expansion and upgrade of its Harare factory at a cost of CHF25m (£15.2m). This is expected to bolster its production capacity and help supply other regional markets such as Zambia and Mozambique.

Paul Bulcke, CEO of Nestle, said: "Nestle is committed to unlock the business opportunities and to promote growth in Equatorial Africa. With 400 million people and an emerging middle-class with rising purchasing power, this region has major potential for Nestle."

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