FDBusiness.com

Nestle has completed a Eur6 million investment in new manufacturing lines at its condensed milk products factory in Pontecesures, Spain, increasing production by 50%. The exansion follows two major financial commitments Nestle has made to develop its manufacturing operations inEurope this year.

Nestle recently announced it would invest SFr300 million (Eur250 million) in a new Nespresso factory in Switzerland. In February it revealed plans to invest SFr265 million in a new Nescafe Dolce Gusto factory in Germany.

The company’s investment in Pontecesures is the third it has made in Spain in the last 18 months, reflecting its belief in its Spanish operations despite the country’s challenging economic situation. Almost half of the Pontecesures factory’s production is exported to countries in Europe, Asia and Africa. The investment has boosted exports by 12%.

The factory now has eight production lines, allowing it to manufacture condensed milk products in a variety of different formats. In November Nestle invested Eur10 million to produce different varieties of chocolate at its factory in La Penilla de Cayon. This followed a SFr64 million investment to boost production at its Nescafe Dolce Gusto factory in Girona in March 2011.

Nestle Spainemploys almost 6,000 people. It had a turnover of more than Eur2 billion in 2011. Nestle’s factory in Pontecesures uses fresh milk supplied by more than 260 farms in the local province of Galicia. Today, Nestle has 12 manufacturing sites in Spain. About 40% of its total production is exported, mainly to other countries in Europe.