Fonterra expands dairy production capabilities in Indonesia

Fonterra will expand its dairy production capabilities in Indonesia with its first blending and packing plant in Cikarang, West Java.

The company has started work on the IDR357bn ($31.3m) facility, which will support the growth of its Anlene, Anmum and Anchor Boneeto brands.

The facility marks the largest investment for Fonterra in ASEAN in the last ten years, and will increase its on-ground capabilities for the long-term growth of the business, the company said.

It is expected to go onstream by March 2015, and will support the Cikarang and wider Bekasi regency communities with 150 full-time jobs.

Around 12,000t of advanced and base nutrition milk powder products will be packed and blended at the Cikarang plant.

Fonterra Asia Pacific, Middle East and Africa (APMEA) managing director Pascal De Petrini said that the Fonterra Brands Manufacturing Indonesia Cikarang Plant will allow the company to meet the ever-growing demand for dairy nutrition in Indonesia.

"Demand for dairy in Indonesia is expected to grow by around 5% each year to 2020, and our investment in this facility will help support this growth," Petrini added.

Fonterra Brands Indonesia president director Paul Richards said that as well as the financial investment, the new plant will bring Fonterra’s world-class dairy manufacturing in design standards, knowledge, expertise and technology from New Zealand to Indonesia.

"It will also provide local staff with training and development opportunities in advanced food safety, quality and operational standards," Richards added.

In Indonesia, Fonterra caters to distribution and retail partners, and its products are available at more than 60,000 outlets.