Nestlé has broken ground on the construction of its new $220 million factory in Central Java, Indonesia, which it says will encourage further development of the dairy sector in the region.
The Bandaraya factory will produce Bear Brand liquid milk and ready-to-drink (RTD) beverages Milo and Nescafé. Nestlé says the investment will provide around 200 new jobs, as well as open a new business opportunity for the community for dairy development.
Located at Batang Industrial Park, the plant will be built on 20 hectares of land and is expected to be ready for commercial production in 2023.
Nestlé Indonesia recently completed the expansion of its three existing sites in Karawang, Kejayan and Panjang, following a $100 million investment.
“Despite the Covid-19 pandemic, we are optimistic about the growth opportunities in Indonesia,” said Ganesan Ampalavanar, the market head of Nestlé Indonesia.
“Our decision to invest in this new factory and to expand our capacity is a demonstration of Nestlé’s long-term commitment to Indonesia. We aim to increase employment, to utilise local raw materials to the extent possible, to contribute to the development of the Indonesian economy and to produce high-quality, nutritious food and beverage products that are safe and tasty for our consumers.”
Nestlé Indonesia has also signed a memorandum of understanding with the regional government of Batang, aimed at developing a partnership with prospective dairy farmers and farmer groups to develop dairy farming and fresh milk raw materials for the new factory.
Chairman of Investment Coordinating Board of Republic of Indonesia, Bahlil Lahadalia, said: “Nestlé Indonesia will collaborate with Batang regional government to develop smallholder dairy farming in Batang. This will be very good as it will be beneficial for dairy farmers and rural economic in Central Java.”
Since 1975, Nestlé Indonesia has been partnering with dairy farmers and cooperatives in East Java by providing technical and financial assistance to improve the productivity and quality of fresh-milk production.
Last month, Nestlé launched a plant-based RTD version of its Milo cocoa beverage in Malaysia, which will also be introduced to further Asian markets; along with two Nescafé plant-based coffee RTDs.
© FoodBev Media Ltd 2021
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