The Nestlé Flowergate Factory is a new Maggi production facility in the Kajola village, near Sagamu, in the Nigerian state of Ogun. Maggi is a popular brand of Nestlé’s food seasoning and culinary products.

The factory was officially inaugurated in February 2011. It is the food and beverages giant’s 27th plant in Africa. The company employs about 3,000 people in Nigeria and has operations worth NGN59bn in the country.

The project required an estimated investment of NGN12bn ($80m). It provides 180 direct jobs and offers employment to more than 1,500 people, including farmers, distributors and suppliers.

Capacity

The plant is expected to increase Maggi production capacity by 22%. The additional production will enable Nestlé to introduce its products in new markets that were previously inaccessible to distributors.

The production of culinary products in Nigeria is expected to double with the Flowergate plant. The complex will have a potential to manufacture other Nestlé food products in future.

“The plant is expected to increase Maggi production capacity by 22%.”

Projects

The Sagamu plant is twice the size of the Agbara plant, which is Nestlé’s only other production site in Nigeria.

In March 2008 the company secured an inter-company loan of $54m for the project from Nestlé Treasury Centre – Middle East and Africa.

Nestlé Treasury Centre is a Nestlé Group Company based in the UAE that looks after the financial activities of the Nestlé Group. The loan has been secured at an interest of 4.5% per annum for seven years.

Another NGN3bn ($20m) was sourced locally for one year at an interest rate of 17% per annum. Dunn Loren Merrifield was the investment consultant.

Nestlé has invested about $850m in the past five years in Africa. The company also plans to invest another $1bn in new plants in the Democratic Republic of Congo, Angola and Mozambique over the next two years. The total number of factories will also be increased to 32 by 2012.

Site

The plant is located at the Flowergate Mixed Development Scheme in Kajola village. It has been built on 12ha of a 36.3ha site located along the Sagamu and Abeokuta expressway.

Construction

In February 2009 Nestlé awarded the construction contract to Monterosa Constructions, a subsidiary of De Simone. Construction started in March 2009 and completed in the fourth quarter of 2010.

Plant design

The infrastructure at the Flowergate complex includes a raw material storage facility, processing and wrapping facility, a mixing tower, an industrial service building, cooling towers and chillers. A production line is entirely dedicated for Maggi.

Processing

The factory processes perishable agricultural raw materials produced locally to produce Maggi food seasoning and other culinary products.

These products are processed to the emerging prerequisites such as nutritional benefits, format, accessibility and price. Maggi products are added with key micronutrients to help combat iodine, zinc, iron and vitamin A deficiencies.

Expansion

Every year, 37 billion Maggi bouillon cubes are sold in the Central and West Africa regions. Huge demand for the Milo and Maggi brands led the company to establish the new factory. The plant’s output will be marketed in Nigeria, and the Central and the West Africa regions.

With about two-thirds of the area being vacant, the site has scope for future expansion. The plant design also provides for future expansions to produce other Nestlé products.