Frito-Lay potato chips plant in Azov (Rostov region) to start production shortly

PepsiCo will commence production of Frito Lay chips at its plant in Azov (Rostov region) the end of November, the region's Deputy Governor Alexander Noskov said at a press conference on Friday at Interfax's office in Rostov on the Don.

"The construction readiness of the plant is in place and a test launch has been made. However, there are several internal issues regarding the insurance company that covers PepsiCo's assets. Therefore, a decision has been made to rectify all bugs and deficiencies by the end of the month while the seasonal and climatic possibilities are there,"Noskov said.

It was earlier reported that the plant would be launched in April 2009 but this date was moved to October.

Noskov said that the plant would have production in November and December.

However, this output will likely not be sold. In addition, the company will continue work on the plant's second section.

It was earlier reported that in October 2007, PepsiCo started construction of a plant for the production of Frito Lay chips in the Rostov region. Total investment in the project will top $170 million