Nestlé to invest US$ 285.7 million in Brazil in 2011
O Estado de S. Paulo 09/22/10
The President of the Swiss multinational Nestlé in Brazil, Ivan Zurita, said yesterday the company will invest between R$ 450 million (US$ 257 million) and R$ 500 million (US$ 285.7 million) in Brazil in 2011. The amount will be used in the enlargement and erection of plants, technology and innovation, and it does not include investments in new acquisitions. "Our goal is to always grow twice the GDP (Gross Domestic Product) every year, and we want to duplicate the company in five years. For 2010, we intend to increase our earnings in nearly 12%", said the executive. In 2009, the sales of company reached R$ 16 billion (US$ 8.1 billion) - which means this year the earnings should get near R$ 18 billion (US$ 10.3 billion). Currently, according to Zurita, Brazil is the country where Nestlé grows the fastest in the world.The Executive also confirmed yesterday the opening of a new plant of beverages in Rio de Janeiro, the second in the State, with investments between R$ 80 million (US$ 45.7 million) and R$ 100 million (US$ 57.1 million). "We still have not decided the location of the plant, which will be essentially for the production of milk beverages. We're mapping the State to find a suitable region both in terms of collection of raw-materials and professional training. In more or less a week we will be meeting with the Secretary of State for the Development of the State to define the location and we will immediately begin the construction", said Zurita.
Nestlé currently has 30 plants in Brazil, and the new unit in Rio de Janeiro is in line with the strategy of decentralization of the production the company is performing in the country. "Besides, Rio de Janeiro is a great consumer of beverages in Brazil, and the decentralization provides us more accessible logistics cost", said the President of Nestlé. The Executive has also announced it will carry out enlargements in the plant of Ibiá, in Minas Gerais, still this year. With regard to other acquisitions, Zurita said the company is analyzing the market opportunities, but that, mainly in the dairy sector, there isn't great offer of companies.