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PepsiCo starts construction of a new savory snack processing plant in Russia

PepsiCo Russia has laid the foundation stone for a new processing plant for the production of savory snacks in the Industrial and Logistics Park of the Novosibirsk Region, according to a recent press release issued by PepsiCo Russia. [Novosibirsk is a city in Siberia, southern Russia]

The ceremony was attended by the Governor of the Novosibirsk Region Andrei Travnikov and the President of PepsiCo Russia, Belarus, Ukraine, the Caucasus and Central Asia, Neil Starrock. The plant in Novosibirsk will become PepsiCo’s third plant to produce salty snacks in Russia. In total, there are more than 20 PepsiCo subsidiaries in Russia. The company has over time invested over US$10 billion in Russia. 

The first two operating lines of the plant will start working at the end of 2021. The new plant will have a production capacity of more than 60 thousand tons and will produce Lay’s ® chips and “Khrus Team” croutons.

An agreement on the construction of a new plant was signed between PepsiCo, the Novosibirsk Region and the Investment Development Agency of the Novosibirsk Region in 2019. The investments will amount to about 12 billion rubles. 

PepsiCo will also launch an agricultural program in the region aimed at providing the new plant with local potatoes. Today all Lay’s ® potato chips in Russia are made exclusively from potatoes grown in the country. The company cooperates with more than 50 agricultural operations in 15 regions and annually processes about 400 thousand tons of potatoes. 

The construction of a new enterprise in Novosibirsk will increase the efficiency of the company’s logistics by localizing production, and will also provide consumers in Siberia, the Urals, the Far East and neighboring countries with products manufactured in the Siberian region. 

According to Neil Surrock, “We highly appreciate the support provided to our project by the leadership of the Novosibirsk region and personally by Governor Andrey Travnikov. The region has created favorable conditions for the work of large foreign investors. Despite the objective difficulties caused by the pandemic, we plan to build and launch a new enterprise on time. The new plant will be built in accordance with the principles of PepsiCo – it will be as energy efficient as possible, modern environmental standards will be introduced here, including for waste disposal.”

The new plant is expected to create 900 jobs.

Source: PepsiCo Russia. Read the full press release here
Photo: Bakery and Snacks

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