PepsiCo South Africa, the owner of Lay’s and Simba, has announced a significant expansion of its Isando factory in Gauteng with the addition of a state-of-the-art potato chip production line. This expansion represents a R746 million investment aimed at enhancing production capabilities and meeting the increasing demand for snack foods across Southern African markets.
In a statement, PepsiCo South Africa highlighted that this investment is expected to create 100 new jobs, thereby positioning the company to better serve the growing appetite for its snack products. The Isando facility, strategically located near key potato-growing regions in Johannesburg, will now eliminate the need for long-distance transportation of potato chips from the company’s Parow and Durban plants. This logistical improvement is projected to reduce transportation costs and carbon emissions significantly, cutting out over 2.2 million kilometers and more than 2,300 cross-country shipments annually.
PepsiCo South Africa currently operates four potato chip production lines across three plants, all running at high capacity. These facilities were retained following PepsiCo’s acquisition of Pioneer Foods in 2020 for approximately R24 billion. The addition of the new production line at Isando is set to boost production capacity and enhance 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.”
The installation of the new production line involved local suppliers, and the ongoing operations have created additional indirect jobs, benefiting small and medium-sized businesses in South Africa. “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,” Heyl added. “We are excited about the potential for this investment to drive economic growth and job creation.”
In addition to the new production line, PepsiCo South Africa, in partnership with the Department of Trade, Industry and Competition, has invested R100 million in an anaerobic digester plant at the Isando facility. This plant converts organic waste, such as rejected potatoes, peels, and other by-products, into biogas, a sustainable energy source. The biogas powers a gas-fired engine, generating up to 780kW of electricity, which covers around 30% of the Isando plant’s peak energy needs.
“These combined investments drive efficiency while championing sustainability in support of our PepsiCo Positive strategy, which is not just a business strategy; it’s a transformative journey across our operations, from production to marketing to distribution,” said Heyl.
