Nestle (NESN.S) announced on Thursday that it will invest 2 billion reais ($392.73 million) in its nutrition and health division in Brazil until 2028, including 600 million reais for a new infant formula production in the state of Minas Gerais.
About 30% of the 7 billion reais Nestle has set aside for Brazil between 2025 and 2028 will go toward nutrition and health.
Ituiutaba’s new factory is scheduled to start building in 2027 and start operations in 2028. Nestogeno, Nestonutri, Ninho 1+, and Ninho 3+ infant formulae will be initially produced in the new plant.
According to Nestle, the facility might lead to future export potential and assist boost supplies to the Brazilian market, which is now partially supplied by imports.
One of Nestle’s four major growth priorities in Brazil and around the world is the nutrition and health division. It includes some of the company’s most valuable categories, according to Marcelo Melchior, CEO of Nestle Brasil.
Nestle intends to expand output at the current Aracatuba industrial complex in the state of Sao Paulo in addition to the new factory.
