Nestle Plc on Monday launched a 5.4 billion naira ($34 million) distribution centre in Ogun State, a western region of Nigeria, to grow the unit’s operations on the continent.

According to Business Day, the facility has a 17,000-pallet capacity and spreads across four hectares.

Corporate relations manager for Nestle Samuel Adenekan, said the warehouse was constructed to accommodate the company’s increased output following infrastructural upgrades within the last 5 years at the Agbara Ogun state factory.

He added that the new facility will strengthen Nigeria’s role as the largest manufacturing operation for Nestle in the West and Central Africa region.

The Managing director of Nestle Nigeria, Martin Woolnough said, “The new state-of-the-art distribution centre reflects more than just an important investment to broaden our nutrition, health and wellness platform; it illustrates also our commitment to the growth of the Nigerian economy.”

The Agbara manufacturing complex is one of Nestlé’s biggest factories in Africa.

“The factory has witnessed unprecedented infrastructural upgrades since 2010 which include the following: 4.56 billion naira Milo Raw Material facility; 4.13 billion naira Cereals Processing Line expansion; 3.60 billion naira Tri-generation Power Plant; 1.80 billion naira Cereals Milling Plant; and 1.48 billion naira Milo 4th Vacuum Band Dryer,” Business Day reported.