PETALING JAYAr: Nestlé (Malaysia) Bhd is investing over RM100 million to expand its MILO factory in Chembong, Negeri Sembilan.
The move is in line with its strategy of driving strong, profitable growth and well as Malaysia being a key manufacturing hub for Nestlé Group.
"This move is an investment to further strengthen our Nestlé presence in Malaysia. The MILO plant in Chembong is an integral part of the Company’s business, supplying MILO domestically and contributing exports to over 20 countries," Nestlé Malaysia chief executive officer Alois Hofbauer said in a statement this morning.
The Chembong factory will be the world’s biggest MILO manufacturing centre of excellence.
To facilitate this, Nestlé Malaysia will be moving all existing MILO manufacturing operations from its Petaling Jaya (PJ) Factory to consolidate and expand MILO production at the Chembong factory.
"Through the concentration of our MILO operations and our investment of over RM100 million into the Chembong factory, we will not only be able to further upgrade production facilities and improve operational efficiencies, but also scale up capacity and make Chembong the biggest MILO Manufacturing Centre in the Nestlé world.
"This will help us to better meet growing local and export demand," Alois said.
Subsequently, Lactalis, a dairy business with a presence in over 100 countries, will acquire and take over operations of the PJ factory as well as Nestlé’s chilled dairy business.
Lactalis plans to establish Malaysia as the operations hub for its dairy business in ASEAN with plans to drive growth through an expanded portfolio of new products.
“Nestlé remains positive on the Malaysian market and Malaysia as an export hub and we look forward to unlocking more growth opportunities in the future.
"We see great potential that these investments will allow us to strengthen our focus on strategic core businesses that can deliver good long-term growth and are aligned with evolving consumer needs," Alois further said.
He added at the same time, this initiative will pave the way for the chilled dairy business and PJ factory to flourish under the new leadership of Lactalis.