Food and beverage company Nestlé has plans to build a new infant formula factory at its site in Vologda, Russia, with an investment of RUR1.8bn ($31.4m).

An official ceremony was held to lay the foundation stone of the project.

Following the construction of the new facility, Nestlé plans to strengthen its presence and growth in the region.

Nestlé Russia and Eurasia CEO Martial Rolland said: “The factory in Vologda is a strategic plant for Nestlé in Russia and CIS, the only factory producing Nestlé infant formula in the Russia and Eurasia region.

“This new factory will allow us to strengthen our leading position in the Russian infant formula market."

“This new factory will allow us to strengthen our leading position in the Russian infant formula market by developing our ability to supply both the domestic and the export markets.”

For more than two decades, Nestle has invested nearly $2bn on the development of local production. The company currently operates eight factories in Russia.

Nestlé baby food factory manager Eddy Dauphin said: “Today, we are happy to announce that we start construction of the infant formula site, which will allow us to double the capacity of our local production from 2019 onwards.

“With the state-of-the-art equipment and technologies invested into the site, Vologda team and the factory are ready to produce the product for the most sensitive consumers of Nestlé.”