PepsiCo South Africa Expands Potato Chips Production Plant with USD41m Investment
With an expenditure of USD41m (R746m), PepsiCo South Africa has added a new, cutting-edge potato chip production line to its Isando facility. This will place the business in a position to satisfy Southern Africa’s expanding snack food demand and add 100 new jobs to our community. Apart from the South African market, PepsiCo South Africa exports its chip brands to other nations.
A major component of the company’s snack output and a vital component of its operations are potato chips. At the moment, PepsiCo South Africa runs three factories with four potato chip production lines that are all operating at high capacity utilization. Isando’s production capacity will be significantly increased with the addition of this new line, which will also improve supply chain efficiency.
“Expanding our potato chip production capacity is an important move to meet the growing demand for South Africa’s much-loved snacks. Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people,” Riaan Heyl, CEO of PepsiCo South Africa, mentioned.
Due to its strategic location among important potato-growing regions, PepsiCo South Africa’s Isando factory in Johannesburg does not require cross-country shipments of potato chips from its Parow and Durban facilities. Eliminating 2.2m kilometers, or more than 2,300 cross-country shipments every year, will improve transportation efficiency and lower greenhouse gas emissions.
This line was installed by PepsiCo South Africa using local suppliers. The ongoing use of local contractors has resulted in the creation of additional indirect jobs and bolstered the expansion of small and medium-sized businesses in South Africa.
“This investment aligns with our long-term strategy to innovate and grow sustainably, ensuring that we are one of the leading food and beverage companies in South Africa. We are excited about the potential for this investment to drive economic growth and job creation,” Heyl added.
Sustainability Efforts Boosted by Innovative Solution That Will Turn Peels Into Power
PepsiCo South Africa, in partnership with the Department of Trade, Industry, and Competition, not only backed the production line expansion but also invested R100m in an anaerobic digester facility at the Isando factory.
The plant transforms the organic solid waste of rejected potatoes, peels, and other remnant materials generated at the site (which are inevitable by-products of the manufacturing process) into biogas, a clean and renewable source of energy, that will be used to fuel a gas-fired engine generating up to 780kW of electrical energy for use at the facility (~30% of the Isando factory’s peak electrical demand).
“These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy, which is not just a business strategy; it’s a transformative journey across our operations, from production to marketing to distribution,” Heyl concluded.
