Nestlé to begin production at new factory in Ukraine by Q4

UKRAINE – Nestlé, world’s largest food manufacturer, has announced that production at its new factory in Ukraine is set to commence in the fourth quarter of 2024.

The facility, located in Smolyhiv, Volyn oblast, in north-west Ukraine, was initially expected to begin operations earlier this year, but the company has confirmed the start date has now been pushed to later in the year.

The new factory, situated about 40 miles from the Polish border, will focus on producing noodle products. It is part of Nestlé’s broader expansion in Ukraine, where the company already operates several production sites.

These include a factory in Torchyn, just four miles east of Smolyhiv, which manufactures sauces, as well as a coffee and confectionery facility in Lviv and a noodles plant in Kharkiv. Nestlé employs approximately 5,500 people across its Ukrainian operations.

A spokesperson for Nestlé declined to comment on the reasons behind the delay in the factory’s opening. However, the company has emphasized the strategic importance of its operations in Ukraine.

Nestlé plans for the Smolyhiv and Torchyn sites to serve as a European regional hub for its culinary products category, supplying not only the Ukrainian market but also other, undisclosed European markets.

The opening of the new factory is expected to gradually create 300 to 400 new jobs in the manufacturing sector, further bolstering Nestlé’s workforce in the region.

Despite its expansion in Ukraine, Nestlé has faced controversy due to its continued operations in Russia following the invasion of Ukraine.

The company was included on Ukraine’s “international sponsors of war” list, which aimed to draw attention to large multinational corporations that have maintained business activities in Russia.

 Nestlé, along with other food giants like Unilever, Mars, Bonduelle, and PepsiCo, was listed as part of efforts to highlight ongoing business engagements in Russia amid the conflict.

The list was recently removed from public access after concerns were raised by several countries regarding the lack of regulatory oversight in managing the list and its potential negative impact on diplomatic efforts to counter Russian aggression in Ukraine.

In its 2023 annual report, Nestlé disclosed that it continues to operate six factories in Russia, producing beverages, dairy products, nutrition and health science products, prepared dishes, confectionery, and pet food.

The company has stated on its website that it has halted advertising and suspended further capital investments in Russia, while continuing to provide essential food products to the local population and fulfilling its obligations toward employees.

As Nestlé advances its operations in Ukraine, the new factory in Smolyhiv is poised to play a key role in the company’s strategy to strengthen its presence in the European market.

The company’s ongoing activities in both Ukraine and Russia underscore the complex challenges faced by multinational corporations operating in regions affected by conflict.

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