Nestlé begins construction of €220m coffee capsules facility in Germany

Swiss food giant Nestlé has started the construction of a €220m Nescafé Dolce Gusto coffee capsules facility in Schwerin, Mecklenburg-Vorpommern, Germany.

The plant represents the company’s largest ever investment in Germany.

German Chancellor Angela Merkel and Nestlé chief executive officer Paul Bulcke laid a foundation stone for the new facility on 31 May.

The facility is expected to be operational by the end of this year and will create about 450 new jobs.

It will feature 12 new production lines and will produce about two billion coffee capsules per annum for export to the German, Scandinavian and Eastern European markets.

Paul Bulcke said that in spite of the difficult economic environment, the company believes that growth is possible in the European market.

"This is why we are not only investing right now, but continuously, in the European market and in convincing innovations, modern technology, and highly qualified employees."

"This factory is not only our biggest investment in Germany, but one of our biggest-ever investments in Europe," he added.

The factory in Schwerin will be the company’s third Nescafé Dolce Gusto site and will join the existing facilities in Tutbury, UK and Girona, Spain.

Nestlé stated that the new facility reflects its long-standing commitment to Germany where it has had successful operations over the past 110 years.

Germany is Nestlé’s fourth largest market worldwide and is the number one market in terms of sales of Nescafé Dolce Gusto.

Nescafé Dolce Gusto is Nestlé’s machine and capsule system for both hot and cold drinks, and it offers about 30 coffee, Nesquik and Nestea varieties.

The machine and capsule system was launched in 2006 in Switzerland, Germany and the UK and is currently available in 56 countries worldwide.

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Image: German Chancellor Angela Merkel (centre) and Nestlé chief executive Paul Bulcke (left) at the ceremony to lay a foundation stone for the new Dolce Gusto site in Germany. Photo courtesy of Nestlé.