Kraft expands coffee facilities in Russia - Company News - Kraft Foods International - Brief Article

Eurofood, Dec 20, 2001

Kraft Foods International, part of the US giant Philip Morris, has announced plans to invest some US$1m (1.1m [euro]) in expanding coffee production in the Russian region of Leningrad.

Mikhail Sakhnov said the plant will launch a new line to produce and package instant coffee, and hopes the plant will be running at its new full capacity within two years.

The Kraft Foods plant opened one year ago, and is currently able to package up to 5 000 tonnes of coffee a year. The site, in which Kraft has invested US$10m, also produces cheeses, confectionery and other groceries. Its annual turnover is just under US$9bn.

KRAFT REDUCES ASIAN DIVISION

Kraft has also said it will restructure its Asia-Pacific operations. This will involve shutting down several plants and cutting around 1 000 jobs.

The Philip Morris subsidiary said it would close two biscuit manufacturing plants in China and one in Taiwan.

The company will also close a factory near Hong Kong in December and reduce capacity at an Indonesian plant.