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Nestlé Canada to invest $40m in ice cream factory expansion

FBR Staff Writer Published 05 March 2018

Nestlé Canada said that it will invest C$51.5m ($39.9m) to expand its ice cream production capabilities at its London ice cream factory in Southwestern Ontario.

In what will be the fourth round of expansion, the London ice cream plant will accommodate an additional space of 9,000ft² to create more production capacity for Haagen-Dazs and other products.

The expansion will help Nestlé Canada’s innovations and launch new products in the market.

Nestlé has started groundwork for the expansion project with an intention to start the new production in early 2019.

The London ice cream factory manufactures Parlour and Drumstick ice cream products in addition to Haagen-Dazs.

The latest expansion will help in supporting 380 existing jobs while creating 12 new jobs and also move 45 jobs from part-time to full-time roles. It will also help in the company’s purchase of ingredient, packaging and raw materials.

Nestlé Canada ice cream business executive officer Jayne Payette said: "We are really proud to be a part of the London community and excited to be making this significant investment.

"Our employees work hard every day to bring these great Made In Canada brands to our consumers and this investment allows us to bring even more exciting and innovative products to market."

The expansion project of Nestlé Canada will be supported by a funding of $390,750 from the Ontario government from its Southwestern Ontario Development Fund.

Ontario Agriculture, Food and Rural Affairs Minister Jeff Leal said: “We are pleased to support Nestlé’s significant investment in southwestern Ontario’s food processing and dairy sector.

“Our support for Nestlé Canada through the Southwestern Ontario Development Fund is helping create good jobs and economic opportunities for workers, dairy farmers and communities throughout the London area.”

The first expansion phase at the London ice cream plant began in 2016 with work on the production lines to boost its capacity and flexibility for manufacturing H?agen-Dazs. In the second phase, a second production line for Drumstick was installed.

The third phase saw modernizing the existing production processes to enable better flexibility within the production lines.

Image: Nestlé Canada to further expand its London ice cream factory in Canada. Photo: courtesy of CNW Group/Nestle Canada Inc.