Nestle to invest $100 million in new Indonesian factory

[News_Editor]

Nestle to invest $100 million in new Indonesian factory

2010-12-09 20:43:05 GMT+7 (ICT)

VEVEY, SWITZERLAND (BNO NEW) -- Nestle S.A. on Thursday announced that it is planning to invest $100 million to open a new factory in Indonesia.

Nestle will be producing chocolate milk and baby foods in the factory, which will be established in the western province of Java. The construction project is anticipated to take place in two phases, the first in 2012 and the second in 2015. The initial opening will be employing around 300 people.

Previously, Nestle had already invested an additional $100 million to expand its production facilities in its Kejayaan factory located in Pasuran, East Java.

"This may be Nestle's long-term commitment as an effort to strengthen its position in the Indonesian market," said Nestle Indonesia President Director Arshad Chaudry, adding that the investment plans do not include a relocation.

"We're very optimistic about the growth opportunities in Indonesia. The business and economic environment is progressing," Chaudhry said. "Consumers have gained more purchasing power and the country has a large and growing consumer base."

The project was announced as Nestle's chocolate milk product demands have been growing around 20 percent per year with total sales reaching $900 million.

Meanwhile, Nestle reaffirmed its commitment to the Middle East with a new $136 million manufacturing facility in Dubai which aims to serve the company's markets across the region.

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