Nestle invests $270 mln in Vietnam coffee factory

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Nestle , the world's biggest food maker, said on Tuesday it was investing $270 million in a factory in southern Vietnam, as it seeks to expand its presence in the world's top robusta coffee-producing nation.

The factory in Dong Nai province, Nestle's fifth in Vietnam, would start production in 2013, making coffee products for local consumption and export, the company said in a statement sent to Reuters.

It said the investment of 230 million Swiss francs, was part of a 350 million francs plan launched last August covering Nestle's pledge to sustainable coffee farming, production and consumption.

Under the plan, Nestle would raise its coffee volume bought directly from Vietnamese farmers to 30,000 tons a year over the next five years, it said.

Nestle has said it has been buying between 20 and 25 percent of Vietnam's total coffee exports annually, mainly via trading companies.

The group's purchase would be at least 230,000 tons this year, as Vietnam -- the world's second-biggest coffee producer after Brazil -- is projected to export 1.15 million tons, or 19.17 million bags.

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