SHAH ALAM, July 8 – Nestle (Malaysia) Bhd is investing RM150 million for the first phase of its new plant, which will double the production capacity of its ready-to-drink (RTD) segment in Malaysia.
The factory, built adjacent to the company’s existing factory in Shah Alam is expected to be fully operational by May 2014.
“The facility will produce the company’s RTD liquid beverages, such as Milo, Nescafe, Nestle Omega, Nestle Low Fat Milk and Nestle Full Cream,” Region Head Nestle Malaysia/Singapore Alois Hofbauer told reporters after the groundbreaking ceremony here today.
The event was also attended by Nestle S.A. Operations and Globe Executive Vice President Jose Lopez and Chairman of Nestle Malaysia Tan Sri Syed Zainol Anwar Jamalullail.
Today, close to 300 million servings of Milo and Nescafe RTD beverages were consumed by Malaysians every year, Hofbauer said.
The new facility would double its RTD beverages capacity, enabling it to produce new products and catering for the export market.
“In the last four years, we have seen significant growth in Nestle RTD beverages. This is mainly due to changes in consumer lifestyles, as people increasingly prefer on-the-go cold beverages.
“The strong surge in demand has encouraged us to invest and expand our manufacturing operations here in Malaysia,” he said, adding that the group allocated RM250 million for capital expenditure this year.
The factory’s state-of-the-art technology will optimise capacity and efficiency, thus ensuring a higher productivity.
The facility is equipped with sustainability design features like heat and rain water recovery systems to reduce energy and water usage while minimising the company’s environmental footprint.
Upon completion, the 16,000 sq metre facility will employ 160 workers and indirectly generate futher job opportunities within its supply chain.
Currently, the group exported about 25 per cent, worth RM1.0 billion, of its total capacity from seven factories to 50 countries.
Besides the RTD category, Nestle products include coffee, prepared food, dairy, cereals, ice cream, chocolate and confectionary.
– BERNAMA
