São Paulo – Multinational food company Nestlé is aiming to invest 50 million Brazilian reals (US$ 31.6 million) in expanding its manufacturing unit in the municipality of Carazinho, in the state of Rio Grande do Sul. The plan was announced last week at a meeting between the company’s vice-presidents, João Dornellas and Humberto Maccabelli, and the governor of the State of Rio Grande do Sul, Tarso Genro.
Through the investment, Nestlé intends to increase its production capacity by 50%. The Carazinho factory produces 60,000 tonnes of products per year, including UHT milk, condensed milk, chocolate powder and milk cream. According to the company, 100 new jobs should be created.
The investment, according to the Nestlé executives, will depend on negotiations for funds to be obtained from Fundopem, a government incentive and financing program. The project, according to Dornellas, is in its final stages and should start being implemented in 2011. According to the secretary of Rural Development, Ivar Pavan, the state of Rio Grande do Sul is waiting for the project to be presented in order to kick off technical studies and issue the fiscal incentives.
Nestlé generates over 700 direct jobs in the state and is supplied by 10,000 milk farmers in Rio Grande do Sul. The Carazinho unit, inaugurated in 2010, has 275 direct employees and receives 350,000 litres of milk per day.
*Translated by Gabriel Pomerancblum
