Nestlé will spend 3.5 billion rubles (45.8 million U.S. dollars) to expand its infant formula production in Russia, the company said on September 21, 2020.

The company will set up a full-cycle factory for the production of dry infant formula in Vologda, 500 kilometers north of Moscow, which will allow the company to fully localize production.

The new operation complements an existing infant formula plant at the site, which was completed in 2019. This facility will cost around two billion rubles.

After construction, the new factory will manufacture Nestogen baby food.

Martial Rolland, head of Nestlé’s operations in Russia and the Eurasian region, said, “Baby food is one of Nestlé’s most important categories. The construction of a full-cycle factory is an important step that will allow us to fully localize dry infant food production in Russia. The new investment project will enable us to meet the growing demand for high-quality baby food, one of the most important categories of food in the society.”