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Business news
PepsiCo to build new factory in St. Petersburg
01.27.2004 14:46

PepsiCo to build new factory in St. Petersburg The world leading producer of soft drinks, PepsiCo intends to expand its business in St. Petersburg. To achieve its goal the company is going to build a manufacturing facility in the Parnas industrial zone of St. Petersburg. Investments in the project will amount to more than $10 million. Currently St. Petersburg representative office of Pepsi Bottling Group Ltd. has applied for feasibility studies at the location Fifth Verhny Pereulok 2, industrial zone “Parnas”, Vyborg district. The area for the future production placement is 17.5 thousand square meters. Alexander Shalnev, the vice-president of Pepsi Bottling Group Corp. has confirmed the fact that the company is planning to implement the project to greatly expand its activity in St. Petersburg market. He says that construction of a new manufacturing facility is necessary both to raise the scale of production in St. Petersburg and to widen the product mix, in accordance with the company’s common categories of drinks: gas water, gas-free mineral water, and other drinks. The company’s management, however, refrained from disclosing the volume of the market expansion and other details of the project until the Investment and Tender commission decides whether or not to allot a piece of land to start the project. As Alexander Shalnev stated, the plans to expand the company’s production capacity are directly linked with the growing sales volume of PepsiCo in Russia. Even at the first stage of the new project the possible investments are estimated at $5-7 million, while the overall investments including acquisition of new machinery could go beyond $20 million.

News source: www.dp.ru
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