Nestlé to build $43m factory in Ukraine amid war with Russia
Nestlé will invest $42.88 million in a new factory in Ukraine, despite the ongoing Russian invasion, Reuters reported.
Nestlé Wagner GmbH and Getty Images
Nestlé Headquarters in Germany."This is an important decision for Nestlé, taken at a very difficult time for the country," Nestlé Director Alessandro Zanelli said in a communicated, depending on the point of sale.
Active conflict zones are not intuitive or common areas for business investment, according to Reuters. A study analyzed investments in conflict zones and found that companies with more consolidated ownership are more likely to invest there. (Nestlé is based in Switzerland and is a listed company.)
Nestlé said it has a strong presence in Ukraine with more than 5,000 employees. After the invasion, the company said it would provide employees with cash and emergency aid during the conflict. It also ended its Russian brands and presence.
The company said it plans to create 1,500 jobs with the new factory in Smolyhiv, which is in the west of the country, and will make spices, soups, instant foods and cold sauces, according to Reuters.
Russia's invasion of Ukraine, launched by President Vladimir Putin in February, has been widely condemned internationally and prompted several corporate responses.
In support of Ukraine. US-based companies like Slack and Grammarly have changed their logos to the colors of the Ukrainian flag. San Francisco's Salesforce Tower was lit up in yellow and blue. Elon Musk, through his company SpaceX, is reportedly still providing satellite internet to Ukrainian soldiers.
However, the invasion has shocked oil and gas markets and driven up prices in the United States and around the world this year.
Ukraine's economy itself was also damaged, shrinking by around 45% due to the invasion, according to the World Bank. Ukraine became part of the Soviet Union in 1922 and became independent again in 1991 after the fall of the USSR.
Nestlé said it wants to help Ukraine in these difficult times.
"We aim to create a food and culinary hub, securing additional jobs and meeting the needs of Ukrainians and all European citizens with high quality products," Zanelli's statement added.
>“Nobody Believed It” This black founder owned a liquor brand in 2012. It launched with great success, then lost it all. Here's how he made a multi-million dollar comeback.
Nestlé will invest $42.88 million in a new factory in Ukraine, despite the ongoing Russian invasion, Reuters reported.
Nestlé Wagner GmbH and Getty Images
Nestlé Headquarters in Germany."This is an important decision for Nestlé, taken at a very difficult time for the country," Nestlé Director Alessandro Zanelli said in a communicated, depending on the point of sale.
Active conflict zones are not intuitive or common areas for business investment, according to Reuters. A study analyzed investments in conflict zones and found that companies with more consolidated ownership are more likely to invest there. (Nestlé is based in Switzerland and is a listed company.)
Nestlé said it has a strong presence in Ukraine with more than 5,000 employees. After the invasion, the company said it would provide employees with cash and emergency aid during the conflict. It also ended its Russian brands and presence.
The company said it plans to create 1,500 jobs with the new factory in Smolyhiv, which is in the west of the country, and will make spices, soups, instant foods and cold sauces, according to Reuters.
Russia's invasion of Ukraine, launched by President Vladimir Putin in February, has been widely condemned internationally and prompted several corporate responses.
In support of Ukraine. US-based companies like Slack and Grammarly have changed their logos to the colors of the Ukrainian flag. San Francisco's Salesforce Tower was lit up in yellow and blue. Elon Musk, through his company SpaceX, is reportedly still providing satellite internet to Ukrainian soldiers.
However, the invasion has shocked oil and gas markets and driven up prices in the United States and around the world this year.
Ukraine's economy itself was also damaged, shrinking by around 45% due to the invasion, according to the World Bank. Ukraine became part of the Soviet Union in 1922 and became independent again in 1991 after the fall of the USSR.
Nestlé said it wants to help Ukraine in these difficult times.
"We aim to create a food and culinary hub, securing additional jobs and meeting the needs of Ukrainians and all European citizens with high quality products," Zanelli's statement added.
>“Nobody Believed It” This black founder owned a liquor brand in 2012. It launched with great success, then lost it all. Here's how he made a multi-million dollar comeback.
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