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    World Economics Kazakhstan

    PepsiCo plans largest salty snack production plant in Kazakhstan by 2026

    PepsiCo plans largest salty snack production plant in Kazakhstan by 2026

    PepsiCo announced plans to establish the largest salty snack production plant in Central Asia, located in the Almaty region of Kazakhstan. The announcement followed a meeting between Kazakhstan’s Prime Minister Olzhas Bektenov and David Manzini, President of PepsiCo for Central Asia, Russia, Belarus, and the Caucasus, on June 14, held to discuss the ambitious project.

    Photo: Olzhas Bektenov and David Manzini
    Source: Press service of prime minister of Kazakhstan
    The plant, which will primarily produce Lays potato chips, is scheduled to commence operations in 2026. The project has already secured $160 mn in private foreign investments. According to the government’s press service, the plant is expected to have an initial production capacity of up to 16,000 tonnes of snacks per year, with plans to increase this to 21,000 tonnes by 2027.

    PepsiCo's new facility aims to serve not only the domestic market but also distribute its products throughout Central Asia and beyond. The project emphasizes the localization of production, integrating innovative technologies to enhance the processing of Kazakh agricultural products. This approach aligns with PepsiCo's global strategy of investing in local economies and promoting sustainable agricultural practices.

    One of the key aspects of the project is its reliance on local raw materials. PepsiCo plans to source up to 66,000 tonnes of potatoes from Kazakh farmers between 2026 and 2030.

    Prime Minister Bektenov highlighted the imporance of the project for agricultural development, boosting farmers’ incomes, and strengthening the national economy. Such large-scale investment initiatives support President Kassym-Jomart Tokayev’s objectives to diversify the economy. This project is part of the implementation of agreements between Tokayev and PepsiCo President Ramon Laguarta.

    The plant is part of a pool of priority investment projects under special government oversight. As of the first quarter of 2024, this pool includes 704 projects worth 32 trillion tenge (US$70.5 bn), anticipated to create 122,500 jobs.

    The United States is one of Kazakhstan’s key investment partners, having invested over $53bn in the country’s economy over the past twenty years. Major companies like Chevron, ExxonMobil, Pfizer, General Electric, and Wabtec are successfully operating in various sectors in Kazakhstan.

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    14.06.2024, 16:37   Comments (0)   1414
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