PepsiCo Has Started Construction Of A Snack Factory In Novosibirsk
On Friday, PepsiCo began construction of its third plant in Russia for the production of salty snacks in the industrial and logistics park of the Novosibirsk region. The investment volume will be 12 billion rubles.
The agreement on the construction of the plant between PepsiCo, the regional government, and the investment development Agency of the Novosibirsk region was signed in 2019 at the Russian investment forum in Sochi. Simultaneously with the construction of the plant, the company is launching a program in the region to provide the future of the enterprise with local potatoes.
"Someone will say that chips are not serious. But this is 12 billion capital investments, a powerful boost for the development of the agro-industrial complex. Several farms in the Novosibirsk region are already conducting test planting of potatoes for the enterprise. Next year, the harvest will go to the future plant. In fact, the effects are very significant. That is a significant contribution to the development of our agro-industrial complex," Governor of the Novosibirsk region Andrey Travnikov said at the ceremony.
In turn, Neil Sturrock, President of PepsiCo in Russia, Belarus, Ukraine, the Caucasus, and Central Asia, said that for The company, Russia is one of the most important markets in the world, it is in the top 3. "We have almost 20 thousand employees, more than 20 factories... the Snack business is the most growing segment for us, and the requirement of quality and quantity of potatoes is very important here. That is a very strategic project for our company. Sales of the plant's products will be conducted not only in Siberia but also in the far East and the Urals," he said.
According to the company, the first two lines of the plant will start working at the end of 2021. In total, it is planned to install four production lines. The capacity of the new enterprise will be more than 60 thousand tons of products per year-potato chips and crackers. So far, PepsiCo is represented in the Novosibirsk region by the company "Siberian milk," which employs more than 600 employees. With the launch of the snack factory, about 900 new jobs will be created as well.
In turn, the head of the Ministry of agriculture of the Novosibirsk region Yevgeny Leshchenko told reporters that the production of about 62 thousand tons of finished products by the plant would require a significant expansion of the raw material base in the region. According to preliminary calculations, the plant's demand for chip potatoes will amount to 176 thousand tons, while for the whole of 2019, all farms in the Novosibirsk region produced 300 thousand tons of potatoes, and these are table varieties that are unsuitable for the production of chips.
"We need to increase potato production in the region by at least one and a half times. That is certainly not an easy task. But we understand how to implement it and, in principle, have already started to increase production, " the Minister said, adding that chip potatoes are a specific product that is not produced in the region currently.