Food giant Nestlé is to invest CHF 40 million (€40.6 million) in a new production facility in western Ukraine, the company said in a press release.
Nestlé is one of very few international companies to announce new investments in Ukraine since Russia invaded the country in February 2022.
'An Important Move'
"This is an important move for Nestlé, taken in a very challenging time for the country," Nestlé regional head Alessandro Zanelli said in a statement.
"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."
Russia's invasion has wrecked Ukraine's economy, which is projected to shrink by 35% this year, according to International Monetary Fund estimates. In recent weeks power blackouts have spread throughout the country as Russia intensified attacks on Ukrainian power facilities.
Job Creation
Nestlé, which already has about 5,800 staff in Ukraine, is planning to add 1,500 new jobs at the new production facility in Smolyhiv in the Volyn region.
The new factory is intended to help boost cold sauces, seasonings, soups and instant food production, supplying both the domestic market and markets in Europe.
In November of this year, Nestlé nudged its 2022 sales outlook upwards, saying that it now expected organic sales growth of 8% to 8.5%, up from an October forecast of around 8%, and an underlying trading operating profit margin of around 17.0%.
It also expects an increase in underlying earnings per share in constant currency terms and capital efficiency.
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