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PepsiCo to Invest $160 Million in New Potato Chip Plant in Kazakhstan

by Devendra K
14.09.2024
in Asia, Company, News, PROCESSING COMPANY
A A
PepsiCo to Invest $160 Million in New Potato Chip Plant in Kazakhstan

A Strategic Move to Enhance Local Agriculture and Economic Growth

PepsiCo has announced a significant investment of $160 million to establish a new potato chip manufacturing facility in Kazakhstan. This decision was revealed during a meeting between PepsiCo executives and Kazakhstan’s Deputy Foreign Minister, Alibek Kuantyrov, signaling a robust commitment to the region’s agro-industrial landscape.

The new plant will be strategically located in the Almaty region, a key area for agricultural development. This facility is expected to not only boost local economic growth but also support the nation’s agricultural sector by creating approximately 350 jobs. Moreover, the plant will emphasize the use of local raw materials, demonstrating PepsiCo’s dedication to integrating into the local economy and supporting local farmers.

Initially, the facility will have a production capacity of between 14,000 and 16,000 tons of potato chips. However, there are plans to scale this capacity to 21,000 tons in subsequent phases. The first phase of construction is anticipated to be completed by 2026, marking a significant milestone in PepsiCo’s expansion strategy in Kazakhstan.

PepsiCo representatives have expressed gratitude for the support received from the Kazakh government, highlighting that this investment is just the beginning of a more extensive commitment to the region. The company aims to work closely with local suppliers, fostering a collaborative environment that will enhance production capabilities to meet both domestic and Central Asian market demands.

This new plant will represent PepsiCo’s first major food production project in Kazakhstan, further solidifying the company’s growing presence in the country. Additionally, the recent announcement of an expanded strategic partnership between Carlsberg Group and PepsiCo will enhance distribution capabilities in the region, allowing Carlsberg to manage the bottling of PepsiCo’s non-alcoholic beverages in Kazakhstan and Kyrgyzstan starting January 1, 2026.

For farmers, agronomists, and stakeholders in the potato industry, this investment not only signifies a potential increase in demand for locally grown potatoes but also opens up avenues for collaboration and innovation in potato cultivation practices. As PepsiCo embarks on this journey, it could pave the way for advancements in agricultural technologies and sustainable farming methods that benefit the entire sector.

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