![PepsiCo to invest $160 million in Kazakhstan for a snack production plant](http://media.assettype.com/foodtechbiz%2F2024-06%2F21a168b1-c9a1-4ce7-bed3-52783602958d%2Fk730tkibmijd0meya67jqtj9z1c9681n.jpg?w=480&auto=format%2Ccompress&fit=max)
A presentation and signing ceremony for the roadmap to implement a project for constructing a salty snack production plant in Kazakhstan took place in Astana. The facility, located in the Almaty region, will produce potato chips under the globally renowned Lay's brand. The American company plans to invest $160 million, creating 350 jobs. Initially, the plant's capacity will range from 14,000 to 16,000 tons, with a subsequent increase to 21,000 tons.
The production will utilize Kazakhstani potatoes. By the end of 2024, PepsiCo will launch a partnership program for Kazakhstani agricultural producers. As part of this program, PepsiCo will supply farmers with seeds of special "chip" varieties, and the company's agro-team will continuously advise partners to implement modern sustainable farming technologies, crop cultivation, and preservation techniques. PepsiCo is already collaborating with the Ministry of Agriculture of the Republic of Kazakhstan to ensure future production is supplied with local raw materials. The company aims to use only Kazakhstani-grown potatoes for production by 2033.
The first phase of the plant's construction is expected to be completed in 2026. The plant's launch will create hundreds of new jobs for potato suppliers, transportation, and logistics partners, among others.
David Manzini, president of PepsiCo Russia, Belarus, Caucasus, and Central Asia, stated, "This announcement of such significant investments in Kazakhstan is a big step for our business. The people of the country have known and loved our company's products for many decades. The construction of the plant in the Almaty region will not only meet the growing demand of the Kazakhstani market but also establish export to other CIS countries. We see support from government authorities at both the highest level and at the akimat level, and we are grateful for the comprehensive support of JSC NC 'KAZAKH INVEST'. We are confident that the project will be successfully implemented within the planned time frame."
Yerzhan Yelekeyev, chairman of the Board of JSC NC 'KAZAKH INVEST', commented, "The arrival of such a large investor as PepsiCo confirms the high investment attractiveness of the Republic of Kazakhstan. In accordance with the President's instructions, we create favorable conditions for launching new production facilities, creating new jobs, and for this, all levels of government work as one result-oriented team. Today we signed a roadmap for the development of the project with PepsiCo, where the terms and areas of responsibility of all parties are clearly outlined to ensure the implementation of the project for the construction of a new enterprise in the non-resource sector in Kazakhstan and then realize its export potential."
Based on the principles laid out in the PepsiCo Positive (pep+) strategy, the company will build the new production facility with SOFS (sustainable operations from start) requirements. This means that nature-conserving solutions will be implemented during the design and construction process to make production most efficient in terms of natural resource use and environmental impact. These solutions include rainwater collection for irrigation of the factory's green spaces, water optimization systems at treatment facilities, heat recovery for building heating, "smart" LED lighting, and many others. The launch of local production itself will significantly reduce greenhouse gas emissions as there will be no need to transport raw materials and finished products from other countries.
Source: KAZAKH INVEST
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