FDBusiness.com

Nestle is continuing to drive its growth in Europe with a €10 million (more than SFr12 million) investment to produce different varieties of chocolate in Spain. The company has installed a new production line for moulding chocolates at its factory in La Penilla de Cayon in the north of the country. It is one of eight major investments Nestle has made in its manufacturing operations in Europe this year, including SFr45 million to extend a factory in Hungaryand SFr38 million to double pet food production in Russia.

The investment in La Penilla is the second Nestle has made in Spain this year, reflecting the company’s continued confidence in the Spanish market. In March, Nestle invested SFr64 million to boost production at its Nescafe Dolce Gusto factory in Girona.

Thanks to sales of Nescafe Dolce Gusto, Nestle Spain increased its exports by more than 40% in the first six months of 2011, despite the country’s tough economic conditions.

The new production line at Nestle’s La Penilla factory is equipped with technology for making new types of chocolate with different shapes and textures. “This investment reflects the importance Nestle places on continuous innovation,” says Bernard Meunier, vice president and chief executive of Nestle Spain.

The investment in the new production line will expand the factory’s annual production of chocolate to 7,000 tonnes. It confirms Nestle’s commitment to accelerating confectionery development, following the company’s expansion of its Product Technology Centre for confectionery in the city of York in the United Kingdom in September.

Nestle’s factory in La Penilla de Cayon produces chocolates and confectionery, cocoa powder, and infant formula. Around 40% of the factory’s annual production is exported to 45 countries worldwide. The new production line takes Nestle’s total investment in the factory to Eur75 million (more than SFr90 million) over the last five years.