PepsiCo South Africa has unveiled a cutting-edge potato chip production line at its Isando facility in Johannesburg, supported by a substantial R746 million investment. This expansion is set to create 100 direct jobs, bolster the local economy, and meet the growing appetite for snack foods, with products also destined for export.
Potato chips are a cornerstone of PepsiCo South Africa’s snack portfolio. The company operates four production lines across three plants, all nearing maximum capacity. The new Isando line will significantly increase production capabilities while optimising 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,” said Riaan Heyl, CEO of PepsiCo South Africa.
“Alongside creating new jobs, this new line shows our commitment to innovation and efficiency, as we continue to deliver high-quality products to people.”
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The Isando facility’s central location near major potato-growing areas eliminates the need for inter-city transport of chips from Durban and Parow plants. This logistical improvement will cut greenhouse gas emissions by reducing over 2.2 million kilometres of cross-country shipments annually, enhancing PepsiCo’s sustainability efforts.
Support for local suppliers and SMEs
PepsiCo prioritised South African suppliers for the installation of the new production line, stimulating indirect job creation through local contractors. This approach reinforces the company’s commitment to nurturing small and medium enterprises (SMEs), driving growth across the supply chain.
“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,” added Heyl.
Turning waste into energy
Furthering its sustainability objectives, PepsiCo South Africa has also invested R100 million in an anaerobic digester plant in partnership with the Department of Trade, Industry, and Competition.
This eco-friendly facility converts organic waste, such as potato peels and rejected produce, into biogas. The renewable energy generated will power a gas-fired engine, supplying up to 780kW of electrical energy – approximately 30% of the factory’s peak demand.
“These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy,” said Heyl. “It’s not just a business strategy; it’s a transformative journey across our operations, from production to marketing to distribution.”
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