THE CITY OF L'VIV: Nestlé's will invest CHF 25 million over to establish a new Shared Service Centre in the Ukrainian city of L'viv.
Nestlé continues to expand in emerging markets by extending to Central and Eastern Europe with the creation of a new service centre.
By investing CHF 25 million over three years to establish the Shared Service Centre in the Ukrainian city of L’viv, the facility will support more than 20 countries in the region such as Russia, Poland, Romania, Hungary and Bulgaria.
L’viv was chosen for its location due to its local transport infrastructure, employee talent potential, real estate and office space availability. In addition, the city is also home to Nestlé’s Svitoch confectionery factory.
The L’viv centre is set to become the third internal Shared Service Centre worldwide led by Nestlé Business Services (NBS) – an international unit under the Nestlé umbrella that performs a standardised and cost-effective way of running financial and HR services.
The centre will reflect the model of two other internal NBS Shared Service Centres that support the Latin American region and the Asia, Oceania, Middle East and South Africa region – with a centre based in Ribeirão Preto in Brazil since 2006, and a centre in the Philippine capital, Manila, since 2008.
At the Brazil centre, around 400 employees support 21 Latin American countries in financial services and employee services focusing exclusively on accounting activities, HR administration and payroll. While in the Philippines, a workforce of around 550 employees support countries from Australia to Vietnam in the same categories.
Bringing together financial and human resources transactional activities as a single entity, the L’viv centre will be the first of its kind to make its mark in Central and Eastern Europe.
This exposure will maximise Nestlé’s drive in emerging markets by making an impact in the region including generating growth in the local economy, boosting employment and creating a talent pool of young skilled workers in L’viv.
Over 750 years old, the UNESCO World Heritage city has a population of 800,000 with 65% of people qualified in higher education. As the third Ukrainian city with the highest number of students, there are also around 30,000 university students which graduate each year. The creation of 350 jobs targeted at such graduates will form an environment for driving employment opportunities in L’viv.
NBS aims to form partnerships with some of the 12 universities in the L’viv region to develop specific curriculums including foreign languages and international finance, to align with the Shared Services industry. As part of this goal, Nestlé has already commenced talks with Ivan Vakachuk, Rector of L’viv National University.
Mainly focused on business, law and management, the university partnerships will follow similar learning initiatives already implemented by Nestlé in Malaysia. Since 2006, the Malaysian programme has focused on the development of local Nestlé executives into first line managers. This has upgraded workforce competencies in order to meet the needs of the Company and challenges of the global market.
In addition, construction of the new premises in L’viv will contribute to the regeneration of the area by sourcing local suppliers and materials.
Established in 1994 with its head office in Ukrainian capital Kiev, Nestlé has built up a strong presence in the country over the past 16 years with around 4,500 employees.
Acquiring confectionery brand Svitoch in 1998 and culinary brand Torchyn in 2003, Nestlé Ukraine offers internationally recognised brands such as Nescafé, Nesquik, Nuts, Kit Kat and Lion.
In driving Nestlé’s strategy of growth in emerging markets, the investment in the L’viv centre follows the acquisition in January of the Ukrainian brand Mivina, a market leader in instant noodles, instant mashed potato and dehydrated seasonings. The acquisition enables Nestlé to complement its culinary portfolio in Ukraine and boost its presence in one of the fastest growing segments of the Ukrainian food market.