The plant will be based in Mantua, about 160 km (100 miles)south-east of Milan, and is scheduled to be completed by 2027, Urso's ministry said in a statement. It said the new factory was expected to employ 300 people.

Nestle's willingness to strengthen its presence in Italy "confirms the renewed centrality of our country for the production facilities of major global companies," Urso said after meeting the CEO of Nestle Italy, Marco Travaglia.

The decision to open the factory, which will also include a logistics hub, "recognises the strategic role of Italy for Nestle in this strongly developing sector", Travaglia said in the ministry statement.

($1 = 0.9293 euros)

(Reporting by Matteo Negri, editing by Alvise Armellini and Tomasz Janowski)