Kraft-Heinz reinforces investment and expands Spanish production lines

The company is commencing the expansion of its plant in La Rioja after an investment of 70 million euros.

The Kraft-Heinz company continues to drive its investment and expand production lines in Spain. It has as a result already started up the new high-speed production lines that it has built over the last year and a half at its sauces factory in Alfaro (La Rioja). As plant Director Enrique Sanz explained to Invest In Spain at the end of 2023, the aim is to increase production at these facilities, with exports as the main market.

Since the American company chose this factory to start up the project, the investment has amounted to 70 million euros. 39 new jobs have now been created with its start-up. With this expansion, Kraft-Heinz will now seek to become Europe's largest supplier of sauces.

One of the most efficient
Thanks to the investment made, the Alfaro plant has become one of the company's most efficient on the Old Continent. After commissioning the new production lines, it will achieve a processing capacity of 25,000 tonnes of tomatoes per year, and will be able to produce up to 60,000 tonnes of sauces per year.

At its farms throughout Spain, the company has implemented a new technique to increase yields and, at the same time, boost soil biodiversity. This is referred to as cover cropping, the purpose of which is to improve both soil quality and crop yields. According to the company’s data, the farms have managed to double the harvest with this technique, which includes optimising the use of water and nutrients.

Technological capacity
The Picasso project, the name given to the expansion of the Alfaro plant, has not only increased production capacity, it has also improved its technological capacity to launch new products. This is a strategic project for which the Spanish factory competed against other company candidates, such as sites in Poland and the United Kingdom.

By commissioning the new facilities, the percentage of production destined for export has increased from 40% to 95%. This is very significant growth considering that the plant's production had already grown by 50% in 2024 compared to 2018.

Photos: Heinz