Nestle proposes N15bn production lines expansion in Ogun

Nestle Foods, world’s leading nutrition, health and wellness company, has begun N15 billion production lines expansion in Ogun State, the major host of the world renowned producers of the consumable goods in the country, splitting the total investment in two folds: N6 billion in 2016 and N9 billion in the year 2017.

BusinessDay reports that Nestle Nigeria already has some production lines and warehouses in three locations across the state, namely, Agbara, Sango-Ota and Sagamu-Interchange on Lagos-Ibadan Expressway, where about 2,000 residents of the state are directly employed.

Speaking during a working visit to Governor Ibikunle Amosun in Abeokuta, Dharnesh Gordhon, managing director/chief executive officer, Nestle Nigeria plc, disclosed that the expansion drive became necessary in the state when company observed the government’s efforts towards security and business environment.

Gordhon, who said the visit was aimed to commend investor-friendly policy of government, which had attracted huge investment opportunities to the State, stated that Ogun industrial policy had inspired the company to propose an investment of N6 billion and N9 billion this year and next year respectively as part of measures to boost the firm’s profile.
Gordhon said 2,000 residents of the state were directly employed in Nestle’s operation and distribution lines, while another 2,000 employees, including workers from other parts of the country and abroad, were also employed, adding that the expansion drive would translate into huge employment opportunities and wealth creation in the state.

Corroborating Gordhon, Bimbo Ashiru, Ogun state commissioner for commerce and industry, said, “Nestle is investing over N6 billion in the State this year and between N7 – N9 billion next year. So, they are expanding their base; they are creating employment opportunities; they have employed about 2,000 people in this state.

“And we are looking at taking advantage of backward integration, whereby larger percentage of raw materials used will be sourced locally. Our focus now is that we must be able to have industries that will be servicing other industries, so that the value chain will be completed, where we have goods being manufactured one company and raw materials being supplied by another factory.

“For example, Nestle has Olam. Olam is a major supplier of what they need. Nampak Bevcan is taking another part; they do their packaging. We want our manufacturers to be nearer to their raw materials,” Ashiru said.

Responding, Governor Ibikunle Amosun said the state had attracted  over N70 billion worth of investments in the last five years, saying that the government would do more in terms of security, networking, favourable tax policy as well as provision of enabling business environment for both existing and prospective investors operating in the State.

Amosun, who commended the company’s investment drive in spite of economic challenges confronting the nation, assured the firm of more government’s support.

The governor, however, enjoined industries in the state to always maintain clean and safe environment and endeavour to source their materials from local farmers, explaining that it would go a long way in promoting grassroots farming and socio-economic development of the people, translating into more wealth and employment opportunities.

RAZAQ AYINLA