Nestle is investing $195 million to enhance its Purina pet-food processing facility in Wisconsin, USA.
The facility in Jefferson will undergo an expansion with an additional 35,000 square feet added to its premises.
The investment is projected to increase the production of Purina’s wet pet food brands, including Fancy Feast, Elegant Medley, Friskies, and Pro Plan, by close to 50%.
Approximately 100 new positions will also be established at the new location.
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The Wisconsin Economic Development Corporation (WEDC), a local government agency, is backing the initiative with $1.7 million in “business development tax credits,” as stated in a joint announcement with Nestlé Purina PetCare.
The amount will be allocated to the Swiss food corporation over five years, contingent upon “the quantity of jobs generated” by Nestlé and “the level of capital investment during that timeframe.”
Nestlé’s Jefferson project is a part of its $2 billion investment into Purina’s overall “capital expansion projects” between 2020 and 2025, aiming to enhance its pet food manufacturing footprint.
In 2021, the company announced plans to invest $182 million in expanding its Purina factory in King William, Virginia, a project completed last July. Additionally, in 2020, it unveiled a $450 million investment in constructing a new pet food facility in North Carolina, which opened in March of this year.
In February 2023, Nestlé acquired a US pet treats facility from Red Collar Pet Foods located in Miami, Oklahoma. The financial details of the deal were withheld.
The company runs 23 pet food factories across the United States.
In October of last year, the Felix cat food producer announced its intention to invest approximately Ft90 billion ($246 million) into its European pet food division located in Hungary.
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Nolan Terry, Purina’s chief technical officer, stated that the investment in Jefferson “strengthens our ties within the community.”
“We continue to prioritise sustainability, quality, as well as security in our operations, and we are grateful to our local and state partners for their support,” he added.
The Purina facility in Jefferson has been operational since 1910, with approximately 250 employees currently employed at the site.
Earlier this week, Nestlé disclosed its financial results for the first quarter of 2024. The company highlighted its Purina PetCare business as the primary driver of its overall organic growth.
Organically, Nestlé experienced a 1.4% increase in sales, driven by a 3.4% rise in pricing. However, the group’s real internal growth (RIG), which adjusts for pricing effects to reflect changes in volumes, declined by 2%.
In North America, Nestlé noted a widespread demand for its Purina PetCare business, reiterating it as the primary driver of growth for the region, although specific figures were not disclosed.
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