PepsiCo aims to invest over 200 million euros in the expansion and in sustainability initiatives of its chip production site in Veurne

  • PepsiCo intends to increase production by 35% through investments in factory expansion, improved staff facilities, and a new warehouse.
  • They aim to reduce their greenhouse gas emissions by 75% by phasing out the use of fossil fuels and plan to use 8 times less tap water in the production process by 2030.
  • Additionally, PepsiCo aims to create around 150 new jobs, expecting to increase the number of employees in Veurne to 800.

Veurne, 16th of May 2024 During the visit of Prime Minister Alexander De Croo to PepsiCo's chip site in Veurne today, PepsiCo announced its intention to invest €200 million in expanding its production site in West Flanders and further sustainability efforts.

Veurne is a crucial production site for PepsiCo in Europe, housing a multi-technological snack site with nine production lines covering an area roughly the size of eight football fields. PepsiCo produces approximately 83,000 tons of chips annually for its brands Lay's, Doritos, and Cheetos at this location, equating to over 2 million bags per day. Veurne is one of PepsiCo's largest chip and snack production sites in Europe. PepsiCo aims to increase production at the factory to 115,000 tons per year, which could significantly impact employment in the West-Flanders region. They expect to grow the number of employees in Veurne by about 150 to 800 workers.

Investments in a new warehouse, in the production processes, and staff facilities
A new warehouse, connected directly to the factory via a bridge over a hundred meters long, will aid PepsiCo in realizing its growth plans. Additionally, PepsiCo is investing in production processes to increase production by 35% and building new facilities to accommodate the expected staff growth.

Investments in a sustainable future include reducing reliance on fossil fuels, primarily gas, by electrifying the production site by 2030 and transitioning to renewable energy sources
PepsiCo plans to increase its electricity capacity fivefold from 4 MVA to 20 MVA. Achieving this ambition will require essential investments in local energy infrastructure. Furthermore, PepsiCo announced an initial investment in 2022 aimed at optimizing water usage through smart real-time monitoring, reusing production water, and utilizing rainwater and moisture from potatoes. The goal is to reduce tap water usage by a factor of 8 by 2030, from 3.4 liters to 0.4 liters per kg of finished product.

Miet Delmotte, General Manager of PepsiCo BeLux, stated: "We are investing significantly in a strong future for our Veurne plant, one of PepsiCo's largest chip factories in Europe. Due to its strategic location in Belgium, between France, the United Kingdom, and the Netherlands, we are resolutely choosing our Veurne factory for these significant investments. From the Westhoek, our 650 employees daily supply around 2 million bags of chips to 14 countries. We aim to expand this, creating 150 additional jobs. Sustainability clearly takes center stage in our future plans. A large portion of the investments will be dedicated to reducing our dependence on fossil fuels and optimizing water usage."

Prime Minister Alexander De Croo commented: "PepsiCo's commitment to investing heavily in jobs, expansion, and sustainability at its snack plant in Veurne is exemplary. We need a strong Belgian industry not only to navigate the energy transition together but also to maintain jobs and prosperity in Belgium. I am very grateful that PepsiCo is taking a leading role in Belgium in this regard."

The Veurne plant produces for 14 countries, with Belgium, France, and the Netherlands being the most significant. The company is one of the main buyers of local potato growers with whom they closely collaborate.

 

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