Neil Sturrock, President of PepsiCo in Russia, Belarus, Ukraine, the Caucasus and Central Asia, Andrei Travnikov, Governor of the Novosibirsk region, and Alexander Zyryanov, CEO of the Novosibirsk Region Investment Agency, signed an agreement on construction of a plant to produce snacks in Novosibirsk. The document was signed today at the Sochi Investment Forum.
The new plant will produce potato chips and crackers under such brands as Lay's, Cheetos and KhrusTeam, becoming the company’s third plant, releasing popular salty snacks in Russia.
“PepsiCo was one of the first international companies, producing their goods on the territory of the USSR, the company has a long and rich history on the Russian market. We continue to invest in it. The new plant in Novosibirsk will improve the company’s logistics efficiency through localization of production and purchase of raw materials from local suppliers. In addition, this ambitious project will create new jobs, both directly and indirectly across the entire logistics chain, ultimately having a positive impact on the well-being of local residents,” Neil Sturrock said.
“We are pleased to see that the region’s leading investment platform, the Novosibirsk Region Industrial and Logistics Park, will be used for this project. Modern engineering and transport infrastructure in the park will help PepsiCo to make all plans come true. Currently the procedure of land registration is underway, as well as design and survey works. We guarantee full support to this project and assistance in solving any organizational issues,” Alexander Zyryanov told.
PepsiCo is represented in the Novosibirsk region through a dairy producer Sibirskoye Moloko, which employs more than a thousand employees. The construction of the company’s second plant in the region is expected to be completed by 2021. The plant will employ 900 jobs. PepsiCo will deliver products from its new production site to regions nearby, the Urals and the Far East, as well as to neighboring countries.
PepsiCo is Russia's largest processor of raw milk and industrial purchaser of potatoes. The company acquires more than 350,000 thousand tons annually. To ensure high quality of raw materials for its products, PepsiCo is pursuing an extensive program for suppliers — it holds seminars and trainings for producers of potatoes and raw milk, helps farmers in planting, providing plant protection agents and fertilizers. The program also implies investments in equipping vegetable warehouses with climate control. By participating in this program, PepsiCo’s partners have been able to significantly increase potato yield — from 13 tons to 25 tons per hectare on the average. Today 100% of potatoes come from the company's plants in Russia.
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