Nestle Invests EUR 10 million in Spain

The new production line at Nestlé’s La Penilla factory is equipped with technology for making new types of chocolate with different shapes and textures.

Nov 10 2011 --- Nestlé continues to drive its growth in Europe with a EUR 10 million (more than CHF 12 million) investment to produce different varieties of chocolate in Spain.

The company has installed a new production line for moulding chocolates at its factory in La Penilla de Cayón in the north of the country.

It is one of eight major investments Nestlé has made in its manufacturing operations in Europe this year, including CHF 45 million to extend a factory in Hungary and CHF 38 million to double pet food production in Russia.

Continued confidence in Spain

The investment in La Penilla is the second Nestlé has made in Spain this year, reflecting the company’s continued confidence in the Spanish market.

In March, Nestlé invested CHF 64 million to boost production at its Nescafé Dolce Gusto factory in Girona.

Thanks to sales of Nescafé Dolce Gusto, Nestlé Spain increased its exports by more than 40% in the first six months of 2011, despite the country’s tough economic conditions.

Investing in innovation

The new production line at Nestlé’s La Penilla factory is equipped with technology for making new types of chocolate with different shapes and textures.

“This investment reflects the importance Nestlé places on continuous innovation,” said Bernard Meunier, Vice President and Chief Executive Officer of Nestlé Spain, at an opening ceremony for the new production line.

Mr Meunier was joined by Ignacio Diego, President of the Cantabria Region; Gaston Gómez, Mayor of Santa María de Cayón; and other local officials.

Accelerating confectionery development

The investment in the new production line will expand the factory’s annual production of chocolate to 7,000 tonnes.

It confirms Nestlé’s commitment to accelerating confectionery development, following the company’s expansion of its Product Technology Centre for confectionery in the city of York in the United Kingdom in September.


First factory in Spain

Nestlé’s factory in La Penilla de Cayón was built in 1905. It was the company’s first manufacturing site in Spain.

Initially a factory for milk products, it began making chocolate in 1929. Today, it produces chocolates and confectionery, cocoa powder, and infant formula.

Around 40% of the factory’s annual production is exported to 45 countries worldwide.

The new production line takes Nestlé’s total investment in the factory to EUR 75 million (more than CHF 90 million) over the last five years.