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Nestlé invests €38m in Turkey cereal plant

By Helen Glaberson , 25-Mar-2011

Food giant Nestlé is investing around €38m in a new cereals factory in Turkey on the back of increasing demand for the breakfast category in Turkish households.

“The breakfast cereal category is a very fast growing category in Turkey because of the raising importance of healthy nutrition awareness in the country,” Ferhat Soygenis, a spokesperson for Nestlé told BakeryandSnacks.com.

Nestlé said the 9,400 square-metre factory in Karacabey, Bursa will be a regional hub for breakfast cereals such as Nesquik and Nesfit and will export products to North African and Middle Eastern countries.

Local production

Nestlé Turkey first entered the cereal category in 1998 and has since become the Turkish market leader in the category, according to the company.

But Up until now the company has imported breakfast cereals into Turkey, by the end of the year when the factory is up and running, Nestlé will be able to produce the majority of the products in the country.

The raw ingredients for the products will also be sourced locally, which will create 1,000 indirect jobs among Turkish communities and farmers, said Nestlé.

Hans-Ulrich Mayer, managing director for Nestlé Turkey said “As the 15th breakfast cereals site for Nestlé, this is an indication of our belief in Turkey, and our long-term commitment in this country.”

The facility, constructed with the backing of the Investment Support and Promotion Agency of Turkey (ISPAT), will create 160 new jobs.

Mr İlker Aycı, president of ISPAT said, “We are aware that this pioneering investment is going to set an example to other potential investors. This shows Nestlé’s belief in Turkey and the dynamism of the Turkish economy.”

Continued investment

The new investment brings Nestlé’s total investment in Turkey up to TRY 325m (€148m) over the past four years.

This is not the first investment Nestlé has put into its cereal business this year, in February the company announced plans to pump CHF 67m (€30m) into two new factories in South Africa, one of which will produce its Milo and Cheerio cereal products.

The 16,000 square metre unit in Babelegi, will enable the local production of the cereals which are currently being imported into the region, said the breakfast cereal maker.

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