Kraft Foods to invest $100 mln in coffee output expansion in Russia
2011-10-26 18:03:29
American Kraft Foods Inc., the world's second largest food company, will invest $100 million in coffee output expansion at its plant in northwestern Russia, Production Director Mikhail Sakhnov said on Tuesday.
"The total cost of the project will hit $100 million," Sakhnov said, adding that the company would use its own funds to expand its coffee facility at Gorelovo in the Leningrad Region.
Sakhnov added that the annual output of freeze-dried coffee would jump by over 50 percent to 16,900 tons a year by 2013 at the Gorelovo plant.
The company also plans to spend $7.5 million on installing equipment to process waste products from coffee production.
The company has made a decision to expand production to meet the growing demand for freeze-dried coffee and raise the company's export potential. Currently, the coffee produced at the Gorelovo plant is exported to all the CIS states.
The plant was launched in 2009. The current annual output of the plant is 10,500 tons of production, while the overall investment in the plant since 2000 has hit over $150 million.