Nestle to build infant formula plant in Brazil as part of $393 million investment
Nestle to build infant formula plant in Brazil as part of $393 million investment By Gabriel Araujo
SAO PAULO, Sept 3 (Reuters) - Nestle NESN.S will invest 2 billion reais ($392.73 million) in its nutrition and health division in Brazil through 2028, including 600 million reais for a new infant formula factory in Minas Gerais state, the company said on Thursday.
The nutrition and health allocation represents about 30% of the 7 billion reais Nestle has earmarked for Brazil between 2025 and 2028.
The new factory in the city of Ituiutaba is set to begin construction in 2027 and begin operations from 2028.
New plant will initially produce Nestogeno, Nestonutri, Ninho 1+ and Ninho 3+ infant formulas.
Nestle said the facility would help increase supply to the Brazilian market, which is currently served in part through imports, and could create future export opportunities.
"The Nutrition and Health business is among Nestle's four strategic growth priorities globally and in Brazil. It encompasses some of the company's highest-value categories," Nestle Brasil CEO Marcelo Melchior said.
In addition to new plant, Nestle plans to increase production at existing Aracatuba industrial complex in Sao Paulo state.
($1 = 5.0925 reais)
(Reporting by Gabriel Araujo)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
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