Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Heinz to Invest $20M in Moscow

U.S. food group H.J. Heinz Co. plans to invest more than $20 million in building a ketchup and sauce plant in Moscow by 2000, a company official said Monday.

"We are at a planning stage," Timothy Lamb, Heinz's general director in Moscow, told Reuters.

Heinz plans that the factory, which will employ between 200 and 250 people, will use all local raw materials, Lamb said.

Heinz was considering whether to locate the factory in Moscow, where land fees can reach as much as $250,000 per hectare, or in the wider Moscow region, where the fees are much lower.

Heinz already has a baby food factory in the Stavropol region in southern Russia, whose produce holds 17 percent of the country's market. The factory, which started making cereals 18 months ago, uses only local raw materials, Lamb said.

Lamb was talking after a meeting between representatives of 50 British companies, including the European division of Heinz based in Britain, with Moscow Mayor Yury Luzhkov.