Kellogg’s to establish Malaysia manufacturing facility

US-based food company Kellogg’s is seeking to expand its supply chain capacity in the Asia-Pacific with a new snack manufacturing plant in Bandar Estek, Negeri Sembilin, Malaysia.

The company is continuing efforts to optimise its global manufacturing network as part of the recently announced Project K, a four-year efficiency and effectiveness programme to achieve cost savings, strengthen existing businesses in core and emerging markets and drive increased value-added innovation.

Kellogg’s is investing MYR428.2m ($130m) for the latest project, which will ramp up its halal-certified Pringles production capabilities in Asia-Pacific, while creating at least 300 jobs.

Work on the project is set to commence soon, with the facility expected to go onstream from mid-2015.

Kellogg’s president and CEO John Bryant said that its acquisition of Pringles in 2012 marked a new era in the company’s snacks business.

"The decision to invest in a new snacks manufacturing facility and build our capacity and capability in Asia Pacific is the next step in that journey," he added.

Kellogg’s is currently taking steps to ensure that it operates a sufficient number of plants and production lines to cater to future production needs and evolving customer requirements.

In December, Kellogg’s outlined plans to shut its snacks plant in Charmhaven, Australia and a ready-to-eat cereal plant in London, Ontario, Canada.

The company has also announced plans to expand a cereal and snacks plant located in Rayong, Thailand.

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Image: The new facility will increase Kellogg’s Pringles production capacity in the Asia Pacific markets. Photo: courtesy of Glane23.