PepsiCo is set to double its investment and more than triple the output capacity at a new salty snacks plant currently under construction in Kazakhstan.
This fresh investment is PepsiCo’s largest initiative in Central Asia, as announced by the Kazakh Foreign Ministry on Tuesday, May 20.
In a significant move, PepsiCo initiated the second phase of this project, raising its original investment from $160 million. The expanded facility, located in the Almaty region near the Kyrgyzstan border, is expected to create 900 new jobs and boost production capabilities significantly.
Originally, the facility aimed to produce 16,000 tonnes of snack products annually. However, with the new phase, production is set to increase to 70,000 tonnes per year, sourcing up to 210,000 tonnes of potatoes.
This announcement followed a meeting between Kazakhstan’s Deputy Minister of Foreign Affairs Alibek Kuantyrov and David Manzini, the president of PepsiCo’s Western Eurasia operations.
PepsiCo also aims to exclusively source local potatoes for the plant by 2035. Manzini confirmed that contracts for potato supply have already been signed with 15 Kazakhstani farmers, as reported by the ministry.
“We consider PepsiCo projects as pivotal for advancing the processing industry in our country. Enhancing processing capabilities, fostering contract farming, and producing high-value export products are critical to Kazakhstan’s development strategy,” Kuantyrov stated.
Additionally, Manzini emphasized the vital support from local authorities in bringing this large-scale project to fruition in a short timeframe. “The favorable conditions established for foreign investors by Kazakh authorities have led us to escalate our investment and expand the project significantly,” he noted.
PepsiCo anticipates its international business will be a key driver of revenue growth this year and over the long term. This optimism follows a robust sales outlook, as articulated by chairman and CEO Ramon Laguarta during the discussion of first-quarter results.
