Nestlé, the Swiss food and beverage conglomerate, has announced a €100 million ($97 million) investment to expand production capacity at its coffee factory in Girona, Spain, over the next three years.
The food company giant intends to increase the production capacity of instant coffee and coffee capsules at its facility in Girona, Catalonia, as well as invest in technology to improve sustainability and logistics.
Large volumes are exported from Girona to Europe, America, Asia, Africa, and Oceania. In 2020, the factory exported 80% of its output to 59 countries, including Switzerland, the United Kingdom, France, Greece and Mexico.
Nestlé operates 10 factories in Spain, including a second coffee plant in Reus, south of Girona. The Girona factory, which began producing Nescafé Dolce Gusto in 2008, directly employs 870 people and the investment is expected to create more jobs. Nestlé said that the number will depend on the evolution of market demand.
We are very proud to attract this investment to the Girona factory in recognition of the professional qualifications and skills of the human team. In addition, it represents a step forward in the consolidation of the factory as the reference plant of the Group.
Jordi Jaen, Director, Nestlé factory in Girona
Nestlé also announced the closure of the site’s decaffeination plant, although Jaen stated that the restructuring would not result in job losses.
The company will maintain employment for all those affected with relocations to other positions within the Girona factory. The rest of the employees will not be affected
Nestlé
The company cited an increase in demand as the main driver of organic growth in 2021. Nestlé reported high single-digit coffee sales growth in its July 2022 half-year results due to a strong recovery in out-of-home channels.
This follows Nestlé’s investment in coffee markets in Asia and the Americas earlier this year when it opened its second coffee plant in the port city of Veracruz, Mexico, for $340 million and created 1,200 jobs. The factory will process 40,000 tonnes of green coffee per year, primarily from Mexican coffee farms, according to the company.
In September 2022, the food and beverage giant also announced a considerable investment in its operations in India, pledging $613 million over the next three years to capitalise on product growth opportunities in the country.
