September 26 (SeeNews) - U.S.-based food and beverage company PepsiCo said on Monday it will invest $100 million (102.5 million euro) in its snacks factory in Popesti-Leordeni.
The investment is expected to be completed by 2024 and will double the plant's production capacity, PepsiCo said in a press release.
Following the investment, the Popesti-Leordeni plant near Bucharest will have three new production lines and a new automated warehouse.
"As a production and distribution center for Central and Eastern European markets, Romania represents an essential market in Europe," PepsiCo Europe CEO Silviu Popovici said.
The Star Foods plant in Popesti-Leordeni has 380 employees and spreads on an area of 22,500 sq m, according to PepsiCo's website.
"We will continue to invest sustainably in the Romanian market in the next five years as well, consolidating the role of PepsiCo Romania as a production and distribution center for many markets in the region", PepsiCo Eastern Balkans senior commercial director Adrian Lacatus said.
PepsiCo entered Romania in 2004 by acquiring the local potato chips production leader Star Foods. The company employs over 1,800. Last year, PepsiCo completed a $40 million, five-year investment plan at its Dragomiresti soft drinks factory in southern Romania, by upgrading production lines and opening a fully automated warehouse.
PepsiCo said that in the last ten years, it has directly invested $320 million in Romania, strengthening the company's role as a regional production and distribution hub.
In August, PepsiCo announced that it has entered an agreement to acquire a 20% stake in Romanian spring water company AQUA Carpatica.
($= 1.0251 euro)