Boston, MA 05/19/2014 (wallstreetpr) – The fast moving consumer goods company, Unilever plc (ADR) (NYSE:UL), intends to invest about $150 million in a new factory in Kenya, a move aimed at boosting the company’s production capacity. That will be the largest investment in Africa, according to the company’s EVP East Africa and Emerging Markets, Marc Engel.
The new factory will meet the fast-growing demand for fast moving consumer goods in East Africa and the emerging markets in the region. The company considers East Africa as full of untapped opportunities and increased investment in the region will be in the right direction to not only penetrate the market further, but also generate revenue growth.
According Mr. Engel, Unilever plc (ADR) (NYSE:UL) is prepared for bigger business in the East African region, and the planned investment clearly indicates that position.
Up and running
The company expects the new factory in Kenya to start production in 2016. The company intends to serve markets such as Mozambique, Ethiopia, Malawi, Uganda, Tanzania and Kenya and the region once the new facility is up and running. Unilever plc (ADR) (NYSE:UL) will obtain raw materials for its production process in Kenya. However, it will import petrochemicals and actives from Middle East, and palm oil from Malaysia and Indonesia.
Vision 2020
In expanding investment activities around the worlds, Unilever plc (ADR) (NYSE:UL) seeks to double its business by 2020. The company also intends to improve the livelihood of about a billion people by that time. In addition, the company seeks to reduce its carbon footprint in the world by shifting to cleaner energy sources.
Unilever has immediate plans to shift to 100 percent renewable energy for its activities in the U.S. by 2020. As such, the company continues to court renewable energy companies to support its energy goal. It recently announced a partnership with NRG Energy Inc (NYSE:NRG) that will be responsible for providing renewable energy to its U.S. operations.
In shifting to renewable energy Unilever plc (ADR) (NYSE:UL) hopes to reduce its carbon emissions. It also expects to cut it power expenses as Wal-Mart Stores Inc (NYSE:WMT) that recently disclosed that shifting to renewable energy sources helped it to register significant reduction in it power bills and looks to greater savings in the future.
