Nestlé to increase investment in new factory in Ukraine to €70 mln

Nestlé plans to increase investment in its factory in Volyn region to €70 million by the end of 2027, according to Alessandro Zanelli, CEO of Nestlé in Ukraine and South-Eastern Europe, NV reports.

The company launched a new factory in April 2025 in Smolyhiv, Volyn region. The investment decision for the project was made back in 2022, and it took around 30 months to bring the facility into operation. Initial investments amounted to €43 million, and, according to Zanelli, the company is already seeing a return on this investment.

Nestlé decided to invest in production in Ukraine due to the competitive cost of processing raw materials into finished products and stable production performance. These factors underpinned the decision not to relocate production to other countries but instead to expand operations in Ukraine.

“For this reason, we continue to invest in this facility and will expand it further. We plan to increase total investment to €70 million by the end of 2027. This factory will be able to produce 40 thousand tons of vermicelli per year. We will export these products not only to Europe but also to the United States and Mexico. Every pack of vermicelli that Nestlé sells is produced either in Kharkiv or in Smolyhiv, and I am proud of that,” Zanelli said.

In addition, Nestlé invests around €10 million annually in modernisation, production quality improvements, and facility maintenance.